SBA Lends $624M+ To NYC Businesses
As icons of corporate success, Intel, Apple, Nike, Ben & Jerry's, Federal Express and Staples share something else in common. They all once received assistance from the U.S. Small Business Administration (SBA).
By SBA definition, a small business has less than 500 employees, "That is 99 percent of all American employers," said Man- Li Kuo Lin at the February meeting of Community Board 7 in Flushing.
In Fiscal Year 2005, the New York SBA District Office approved almost 5,000 SBA loans to small businesses for more than $624 million, ranging in amounts from $5,000 to $4,000,000. Lin, a business development specialist representing Queens in the New York district office, said that was a record for the most loans ever approved in the 53-year history of the SBA.
The NY SBA district office was also number one in the country for overall lending, number one, for the second consecutive year in lending to women, number two in lending to Asian and African- Americans, number four in lending to Hispanics and number two in lending to all minorities for last year.
"In Queens, 912 loans were approved for a total of $83 million, Lin said. "I believe Queens can be number one in 2007. We want to help small business owners to achieve their American dream."
Created in 1953, the SBA is an independent federal agency of the United States government. The agency helps to start, build and grow businesses through financial and technical assistance.
"Five hundred and fifty thousand new businesses are started every year," said Lin. "Unfortunately, only one out of two survive after four years." The two primary reasons for business failure are insufficient financing and poor management, Lin said.
Obtaining and securing appropriate financing is key to a successful business startup and expansion. SBA Regular 7(a) small business loans provide up to a maximum of $2 million gross and SBA Express loans (made directly by an SBA approved lender) are available up to a maximum of $350,000. MicroLoans made through nonprofit lending organizations to small businesses to a maximum of $35,000 for qualified businesses are also available through
Created in 1953, the SBA is an independent federal agency of the United States government. The agency helps to start, build and grow businesses
through financial and technical assistance.
SBA loans are guaranteed, permitting banks, credit unions, and other lenders to consider a small business loan request with reduced risks. Regular 7(a) loans are guaranteed 75 percent up to $1.5 million and 85 percent of the gross amount of the loan is $150,000 or less.
The SBA is also instrumental in helping businesses obtain federal contracts. $300 billion is spent by the U.S. federal government every year," said Lin. For more information, Lin can be contacted at 212.264.7060, faxed at 202.292.3873 or by e-mail at firstname.lastname@example.org.
Starting a business requires a lot of motivation, desire and talent it was also noted. But it also takes research and planning. Writing a good business plan is necessary. The business plan thinks through all aspects of the proposed business and is generally required by outside lenders or investors. It is also important to the business owner because it can serve as an assessment tool.
In other business, the board unanimously voted to deny an application for a variance to extend the term for an additional 10 years that expired Oct. 27, 2005 and to legalize the sale of automobiles for Champion Motors, 166-11 Northern Blvd.