Press release:
The Batavia Development Corporation as administrator of the City of Batavia small business loan funds, has approved and closed the fourth loan this year to spur economic activity within the city. A total of $72,000 has been distributed for assistance in business start-up and acquisition, purchase of new equipment and working capital.
“Receiving this business loan has changed my life,” said Kate Gonzalez, longtime resident of Batavia and new owner of the Enchanted Florist on Main Street, Batavia. “I can not say enough good things about this program.”
Gonzalez received a $22,000 loan to use toward purchase of the successful flower shop that gives Gonzalez the opportunity to become her own boss after 25+ years of florist experience.
Last month, Sunny’s restaurant received a loan to purchase new kitchen equipment. In August, master-barber Brandon Armstrong of City Styles received start-up funds to open his shop on Ellicott Street providing hot-towel shaves and contemporary styles like unique fades and brush-cuts. And, Colin Dentino was able to add new equipment and hire additional employees to deliver professional and entertaining “fencing” classes through En Garde.
Overall, these businesses were able to hire three new full-time persons, five part-time employees and retain two jobs with these funds.
The City of Batavia now offers the only small business grant and loan program available in Genesee County allowing requests as low as $1,000 up to $50,000. Eligible applicants must be located within city limits and use funds for business activities within the City of Batavia. Contact the Batavia Development Corporation for more information by dialing 585-345-6380 or visit online at www.BataviaDevelopmentCorp.org.
Photo, by Howard Owens: Kate Gonzalez, center, with her mother, Margaret Anna, left, and her daughter, Rachael Heatherman.
Why can't these four people
Why can't these four people get loans at the local bank..What happens if they don't pay..Do they get a real low interest rate...Where is this money coming from...Anyone know the answer to this ..
All of those questions have
All of those questions have been answered repeatedly in coverage and comments over the past two years.
The money comes from the BDC revolving loan fund. The revolving loan fund was funded by a federal grant more than 20 or 30 years ago.
The revolving loan fund is there to assist businesses that for one reason or another can't qualify for a traditional loan.
If they don't pay, the matter is turned over to a collection agency.
It is a low interest rate.
When money is repaid, it goes back into the fund so it can be loaned again to another local small business.
Caveat being, about half of the revolving loan fund was used to create the economic coordinator position.
How wonderful that such
How wonderful that such "small" amounts of money could have such far-reaching, positive effects in these local businesses. It strikes me that these funds are going further and having a greater effect on the local economy than many of the GCEDC projects that have sent millions of tax-dollars to non-local, international companies and have put tens of thousands of tax-dollars into administrators' personal bank accounts. If small businesses are really the effective drivers of our nation's economic recovery, then why aren't we supporting more of these small business loan agencies with our tax-dollars?
Maybe they will make public
Maybe they will make public the loans in default?