No.2, 1997

A Publication Of The Brooklyn Economic Development Corporation

INDEX

Brooklyn School-to-Work Partnership: It’s Good For Businesses and Students
Network Formed To Save Jobs In NYC
BEDC Adds New Staff Members
Lending Program Closes Its 40th Loan

Brooklyn School-to-Work Partnership:
It’s Good For Businesses and Students

In response to the changing nature and demands of work and the structure of the workplace, the Brooklyn School-to-Work Partnership (BSTWP) has launched an undertaking to prepare students for today's high standards of employment and continued education. Working with some of its member organizations, the Brooklyn Economic Development Corporation, Local Development Corporation of East New York, South Brooklyn Local Development Corporation and TEC Brooklyn, the partnership is creating internship opportunities and employer class visits to expose young people to the world of work and to help them explore potential career opportunities.

BSTWP is a partnership of students, schools, colleges, community organizations, employers, unions and government. Its mission is to create a coordinated effort to educate Brooklyn’s young people about the realities of current and future workplaces and to help them move smoothly between the worlds of education and employment.

Employers have a definite role to play in helping students make the transition from school to work. An internship, paid or unpaid, is one of several work-based activities where a student can learn the skills required of specific jobs, general workplace competencies such as punctuality, appearance, demeanor and team-playing. The student acquires a real-life understanding of day-to-day workplace activities. Internships boost the students’confidence and help them develop contacts that may broaden their employment options.

Students are not the only ones that benefit from internships; employers also benefit. In addition to gaining support in their daily operations, employers gain access to an expanded pool of qualified applicants. They can introduce a student to their industry while evaluating a potential employee on the job prior to hiring. By providing jobs to adolescents, employers help improve the quality of life in the communities in which they do business. Moreover, employers have an opportunity to influence curriculum development to meet their industry requirements.

The internship effort focuses on small and medium-sized business, a sector that is central to the growth of the local economy. While many of these companies are interested in providing internships, some do not know how to approach establishing one. To help them in this area, the partnership runs a three-hour workshop, Preparing Small Businesses to Sponsor Interns, which provides participants with a better understanding of an internship, the benefits it offers business, some common chracteristics of youth, the expectations of interns and supervisors and how to supervise and evaluate an intern. Each participant walks away with a manual to assist in the development of an internship program within his or her business.  BSTWP and its partners are also identifying employers who will share their career experience and industry knowledge with students in the classroom. The partnership is working with Sarah J. Hale, John Jay, John Jay Annex, George Westinghouse Vocation and Technical and Brooklyn School for Global Studies. The program will expand into other high schools as more employers volunteer to participate.

For more information, contact Cynthia Nwizu, Project Manager, or Julia Malloy, Project Coordinator, at (718) 260-5754 and 260-5760.

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Network Formed To Save Jobs In NYC

BUSINESS, labor and community leaders have joined together to launch an initiative to help manufacturing companies and save jobs in New York City.

Known as the New York Industrial Retention Network (NYIRN), the initiative brings together local development corporations, trade groups, business professionals, utilities, government, labor unions and others who share an interest in the well-being of New York’s manufacturing sector and who can help manufacturers to solve a broad variety of problems. BEDC is a founding member of the organization.

The initiative was sparked by the growing recognition of the importance of a healthy manufacturing sector to the City’s economy. Despite decades of decline, manufacturing continues to employ over 250,000 people in New York. It is a particularly important source of employment for people who lack the formal education to find jobs in other industries. Approximately 40% of those workers who lack a high school diploma are employed in the industrial sector.

NYIRN members can help manufacturers recruit skilled workers and implement training programs, learn about new technologies and increase productivity, cut energy costs, obtain financing, find new space and relocate, work with community groups to address neighborhood issues.

Network members act as an early-warning system, alerting the organization when a company is in need of help or is considering relocating. NYIRN then works with its members and the company to learn about the challenges and opportunities it faces and to develop a strategy to help.

NYIRN is particularly active in helping manufacturing firms to develop succession plans and find buyers. New York City manufacturers tend to be relatively small, family- owned companies. Such companies often do not survive to the second generation because they do not have a plan for how the company will be managed or for dealing with the legal problems which might arise if the current owner dies suddenly or retires. One third of family-owned businesses are forced to liquidate just to pay estate taxes, resulting in lost revenues for the family and lost jobs for the community.

NYIRN can help prevent these ownership crises and resolve problems arising out of ownership transitions by linking owners to expert advisors in the areas of family business succession, employee and management buyouts and sale to outside buyers. NYIRN can also help owners to identify potential buyers and investors.

NYIRN will soon be mailing out a survey to New York City manufacturers to assess their needs in a number of different areas. Manufacturers seeking assistance should return the survey. NYIRN will then contact them with specific information or help them to find services. For further information, contact NYIRN at (718) 624-8606.

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BEDC Adds New Staff Members

The Brooklyn Economic Development Corporation is proud to announce the addition of two extremely talented individuals to our already superb staff.

Madeline Marquez (pictured to the right) is our new Managing Director. She comes to BEDC with a long and successful history of involvement in the field of economic development. Her most recent position was that of Director of Economic Development for the Banana Kelly Community Improvement Association in the Bronx. Madeline is a consummate professional, known for her knowledge of economic development issues, feistiness and can-do attitude.   She is a graduate of the State University of New York, College at Old Westbury.

David Wasserberg brings enthusiasm,
commitment and an M.S. from the London School of Economics to his position as Associate Director of Business Services. David is something of a world traveler, having taught English in Japan and volunteered for Habitat for Humanity in Guatemala. He has also worked as a research assistant, auditor and economic consultant.

As members of the BEDC family, Madeline and David will now use their knowledge and skills to serve the business community and aspiring entrepreneurs of Brooklyn. We’re sure that their talents will contribute to Brooklyn’s continued revitalization.

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Lending Program Closes Its 40th Loan

 THE Regional Economic Development Assistance Corporation (REDAC) announced the closing of its 40th loan on April 24, bringing to over $1.2 million in loans by the program New York City’s small  business community.

A.K. Fish, Inc., a start-up woodworking firm located in the Greenpoint Manufacturing and Design Center (GMDC) on Manhattan Avenue in Brooklyn, was the recipient of the loan.The growing firm will apply the proceeds towards the purchase of new equipment and working capital. Andrew Fishman, President of A.K. Fish, first learned about the REDAC program through a notice on the GMDC bulletin board.

"As a start-up firm, I didn’t have a lot of hope that I would be able to secure financing for my business from a bank, so I turned to REDAC. They worked with me to refine my business plan and get all my paperwork together. Within a few weeks, I had the funds I need to take my company to the next level."

Established in 1992, REDAC is a non-profit intermediary lending program. It is capitalized by ten banks and guaranteed by the New York City Economic Development Corporation and several other corporate and foundation philanthropic grants. The program operates City-wide and is managed by the Brooklyn Economic Development Corporation.

Joan Bartolomeo, Business Manager of REDAC, noted that A.K. Fish was typical of the kind of companies the program is seeking to finance. "Our target market is new and emerging firms who don’t have the traditional resources available to them for conventional financing. Their financial history hasn’t been established and they often don’t have a lot of collateral to back a bank loan. We provide that first borrowing experience and help the companies establish a credit history they can literally take to the bank as their capital needs grow." Ms. Bartolomeo is also President of BEDC.

Of the forty loans done to date, over 50 percent have gone to start-up businesses; over 40 percent have been women or minority owned businesses. The average loan is $22,500, but can run as low as $5,000 and as high as $50,000, the program’s limit.

Borrowers have included a diverse array of business enterprises, from restaurants to retailers to business service and manufacturing firms. Loans are available to small businesses throughout New York City for purchases of equipment, real estate acquisition, leasehold improvements and working capital.

Banks participating in REDAC include Chase Manhattan, East New York Savings Bank, Republic National Bank of New York, Apple Bank for Savings, Citibank, Fleet Bank, Marine Midland Bank, U.S. Trust Company of New York, the Fuji Bank and Trust Company and BPD International Bank. In addition to EDC, guarantee contributors include Con Edison, NYNEX Muriel Siebert & Company, The Robert Sterling Clark Foundation and the New York Community Trust.4

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SOLUTIONS
The Brooklyn Economic Development Corporation