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| Volume 1 | No.1, 1997 |
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A Publication Of The Brooklyn Economic Development Corporation |
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Mini-Loan
Program Helps Businesses Get Off The Ground With Financial Aid |
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Mini-Loan Program Helps Businesses Get Off
Businesses, with sales less than $2 million, may borrow from $5-$50,000 for equipment purchase, leasehold improvements, acquisition of real estate and working capital. The maximum loan term is five years, based on the size of the loan and cash flow of the business. Interest rates are prime plus one and one-half percent, adjusted annually. Other charges include a $250 application fee and a closing fee of one percent of the loan or $100, whichever is greater. Loans are available for true start-ups or existing businesses. Start-ups are companies that have been in business for less than three years. Manufacturing, retail and service businesses are all encouraged to apply. To do so, borrowers must submit a completed application, financial statements, personal and business tax returns and the fee to the economic development corporation in their borough. Start-up companies must also submit a business plan describing the venture and showing financial projections for three years. Those needing assistance in creating a business plan, may attend BEDC's Entrepreneurial Training Program or contact one of the Small Business Development Centers, located throughout the City, for guidance. In addition, start-ups must also show their equity share of one-third the project cost. Existing businesses must have an equity participation of five to ten percent. It takes approximately 60 days for approval, so plan ahead when deciding to apply. Personal and business credit checks will be made. If there are delinquencies on these reports, evidence that the borrower is working to improve the matter will be required. REDAC is unable to repay past due debt or lend to those with delinquent taxes. Applicants who have filed for bankruptcy will not be considered for this program. When analyzing a loan proposal, the REDAC loan officers will look at many areas, including management experience, viability of business, financial condition of the business and owners as well as their commitment and attitude. Success in business, especially start-ups, is often based upon the experience of the owner. If deemed necessary, entrepreneurial training may be recommended. Since the loan must be repaid, the venture will be evaluated for profit potential and its benefit to the community. There is a verification process to insure that the business has the cash flow to repay the debt within the prescribed time without causing undo financial hardship. The availability of collateral will also be determined. Some businesses, such as those in the service sector, quite often do not have sufficient collateral for conventional financing. REDAC will take this into consideration. On occasion, additional collateral may be sought, however, personal guarantees are required for all loans. The loan officer must feel comfortable that the loan will be repaid. REDAC offers a viable alternative means of financing for many small businesses. The process takes planning and commitment on the part of the borrowers as well as the loan officers. Working together, however, can lead to a successful and profitable outcome for all. —Denise Kirk-Murray |
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Youth Honored For Their Achievements
The Summer Health Careers Internship Program is designed to provide inner-city, high school youth with the opportunity to work in a health care facility under the guidance of professional staff who act as supervisors and mentors. Students are required to attend a weekly, two- hour class where they hear presentations from health care professionals, tour institutional facilities and receive career orientation and counseling. The program is funded by the New York City Department of Employment, Summer Youth Employment Program and operated in seven local hospitals by BEDC. Councilwoman Wooten reminded the students that the determining factor in achieving their goals will be the degree to which they apply themselves and don't let distractions stand in their way. She reminded them that she began her career as a school matron and rose to be Chairperson of the Council's Committee on Education. The ceremony featured the winners of an essay contest reading their compositions. One winning essay from each of the seven participating hospitals was chosen. Each winner was rewarded with a gift check for fifty dollars and a certificate of achievement. All of the students who participate were awarded a certificate of completion. Spencer Brown, Community Development Manager for Fleet Bank, also addressed the students. Mr. Brown, a native New Yorker, urged the students to make sure to finish their education and pursue career goals before having children. — Hector Rivera |
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Brooklyn Partnership Awarded State Grant The Brooklyn School-To-Work Partnership has been awarded a $300,000 implementation grant by the State Department Of Education to develop a borough-wide network of linkages between the business and educational communities. The Partnership, composed of a wide range of corporate, educational, social service and community organizations, is lead by New York City Technical College. BEDC has been an active member of the partnership since its inception and currently serves on the Executive Board. Federal funding to the State for the development of school-to-work activities is provided as a result of passage of The School-to-Work Opportunities Act in 1994. The intent of the legislation is to bring about systemic educational reform which will prepare all students for work and careers, helping them to make successful transitions from school to employment. Some of the activities the Brooklyn Partnership will pursue during the five year grant period will include organizing high school and college administrators, counselors and teachers into career cluster teams to articulate curriculum between secondary and post-secondary institutions; developing mentoring initiatives between schools and businesses; developing internship opportunities for youth; and, conducting outreach forums to increase the awareness and participation of Brooklyn’s businesses in school-to-work activities. — Hector Rivera |
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BEDC’s Entrepreneur Assistance
Center
If you're as smart as you think you are, you head straight for the Entrepreneur Assistance Center run by BEDC. Since 1993, BEDC has assisted over 250 entrepreneurs in gathering the information and resources needed to succeed in a demanding and competitive marketplace. With 64 hours of direct classroom instruction and expert one-on-one counseling, this class offers every basic skill a budding or growing business owner needs to master. Intensive training in setting up and managing your finances, marketing your business, understanding your insurance and real estate needs, how to access capital and manage your business for profit, are just some of the components of this comprehensive course. Taught by experts in their fields, students leave this hands-on class with a business plan that will pass muster anywhere and the confidence that their "dream" business has a fighting chance of succeeding. BEDC's Entrepreneurship Center operates two classroom cycles per year, one in January, and one in September. Enrollment is limited to 30-35 students per class to ensure each student the opportunity for individualized attention. The cost for this comprehensive course is just $120 and each student leaves with extensive resource materials that will continue to offer valuable references through the first years of business ownership. Two graduates of the Spring, 1996 program, Christine Marinoni and Catherine Blake, realized their dream this past October with the opening of Rising Cafe on Fifth Avenue in Park Slope. Financed in part by the REDAC Mini-Loan Program, which BEDC manages, the partners are reporting that the lessons learned through the program have served them well and their financial projections to date have been on target. We continue to work with Rising Cafe to keep it on the track to success. The program is funded in part by the Minority and Women's Division of Empire State Development, and the NYC Department of Business Services, in addition to the fees generated by tuition. BEDC continues to seek private support for the program and hopes to add an intermediate level course for businesses which have been in operation more than one year and require more advanced information. To find out how to register, call Gloria Benjamin at BEDC on extension 18. —Joan Bartolomeo
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Want to advertise your business but can’t afford the high rates of most traditional media? If you’re serious about expanding your client or customer base at a price that won’t bust your budget, why not place an ad in Solutions? Give us a call at 522-4600. BEDC wishes to thank the following organizations for their continued moral and financial support: Apple Bank For Savings
Republic National Bank Chase has opened a Business Resource Center at 4 Chase Metro Tech . The center will provide small business owners with information, referral and counseling services. For more info call 242-1381. Keep an eye out for BEDC’s webpage on the internet. We’re going on line in February at "BEDC.org". |
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SOLUTIONS
is published by the Brooklyn Economic Development Corporation,
Solutions is partially funded by the New York City Department of Business Services.
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In
an effort to assist Brooklyn's small businesses in accessing capital,
BEDC offers the Regional Economic Development Assistance Corporation
(REDAC) Mini-Loan Program. The REDAC Mini-Loan Program is a
city-wide fund whose purpose is to make affordable loans to New York
City's small businesses. The program is a partnership with 11 banks,
the New York City Economic Development Corporation and five local
economic development corporations, one in each of the boroughs, which
act as the program's sponsors. The overall program is administered
by BEDC.
Councilwoman Priscilla A. Wooten was the keynote speaker
as the Brooklyn Economic Development Corporation honored the achievements
of over 100 youths who participated in this year’s Summer Youth
Employment Health Careers Internship Program. This unique and festive
event, held in the Palm House of the Brooklyn Botanic Garden on August
22, signaled the end of the seven week program.
You’ve been "downsized",
laid off, double shifted or "excessed." You've got the boss
from hell with no opportunity to move forward. You've grown bored
with the same old routine. So you've scrimped and saved and you're
finally ready to set out and build your own road to success. Where
do you go from there?
