FOR IMMEDIATE RELEASE 

BEDC DISCUSSES IMPACT OF CITY FUNDING CUTS ON ITS OPERATION 

BROOKLYN, NY, April 22, 2002-Joan Bartolomeo, president of Brooklyn Economic Development Corporation (BEDC), told the City Council's Brooklyn delegation at a hearing at Borough Hall today that all of her agency's funding from the Department of Business Services will be eliminated in the City's FY 2003 budget. 

In addition to the nearly $500,000 cut from BEDC, almost $700,000 will be cut for other Brooklyn commercial revitalization contracts to other agencies, she said. 

"Funding that the City provides for economic development leverages other state, federal, and private funds," Ms. Bartolomeo said. "The City's modest investment in these programs-a little over $1 million per year in Brooklyn-yields, on average, a 50 percent return on investment. That is, for every dollar provided by the City, at least 50 cents in other dollars are leveraged. This may be in the form of matching funds provided by a storekeeper on Franklin Avenue to redo the façade of his storefront." 

She continued, "The entrepreneur that receives technical assistance to help him or her start a business may invest tens of thousands of his/her own money, not only creating a new business enterprise, but in the process creating local jobs and tax revenue. In BEDC's case, less than $500,000 in Department of Business Services funds enables us to yield almost $800,000 in additional federal, state, and private funds."

BEDC offers one-on-one technical assistance and a wide variety of entrepreneur training programs and micro loans. Since September 11, 17 small businesses that sustained physical or economic damage as a result of the attacks on the World Trade Center have received 18 disaster loans totaling $160,000 from BEDC's micro loan program, the Regional Economic Development Assistance Corporation (REDAC). BEDC also has met with more than 200 businesses about disaster relief and referred clients for SBA Disaster loans, which has resulted in six loans totaling $1.128 million to date.

Besides responding to the World Trade Center disaster, BEDC's REDAC loan program has closed $236,000 in loans to six businesses in the last year, and three businesses recently received a total of $42,000 in loans from BEDC's Brooklyn Loan Fund.

"At this particular time when we are experiencing the aftereffects of 9-11 combined with a softening economy, small business support programs and technical assistance are more important than ever," Ms. Bartolomeo said. "Whenever there is economic uncertainty, we find that people seek to start their own businesses as a means of self-determination and they need the technical assistance and loans we provide to ensure that their businesses survive."

BEDC, a private, nonprofit organization, was established in 1979 to stimulate Brooklyn's economy and create job opportunities for the borough and its residents. BEDC has evolved into a multi-service, business-consulting agency, serving more than 1,000 clients annually and offering comprehensive economic development services. More information is available at www.bedc.org.