Kathy Welsh
NEW YORK – After guaranteeing more than $1 billion in small business loans for the first time ever in FY 2017, the U.S. Small Business Administration (SBA) New York District Office reported record numbers after the first quarter of FY 2018. The cabinet-level federal agency has guaranteed 944 loans worth $225 million in FY 2018.
Beth Goldberg, Director of the New York SBA District Office, which serves New York City, Long Island and seven counties of the Lower Hudson Valley, said her District’s numbers are “way up” over FY 2017.
“SBA has guaranteed 85 percent more loans in the New York District than it had through the same point last year. The dollar-value of these loans is up 19 percent. Now we really want to focus on educating the real estate community, borrowers, lenders—anyone who’ll listen!—on our 504 loan program.” Goldberg said. “We could even start a new hashtag: Say Yes to the Loan, #SYTTL!”
SBA’s 504 loan program can be used for real estate, machinery and equipment and leasehold improvements. Among the incentives for this loan product are down payments as low as 10 percent; a fixed, below-market interest rate on part of the loan and an exemption from the New York State Mortgage recording tax.
Recently appointed SBA Regional Administrator, Region II, Steve Bulger applauded Goldberg and the New York District Office’s prolific loan output.
“The New York District Office has guaranteed more than one-third of Region II’s $627 million first-quarter loan dollars,” Bulger said. “All together, SBA loans to small businesses in the region have created 6,000 new jobs. Restaurants, manufacturers, importer/exporters, retailers, mom-and-pops and millennial-owned companies are leveraging this capital to grow the economy and create jobs.”
More than 2,500 of these jobs were added in the New York District.
Michelle Robey used an SBA loan to open her Dairy Queen franchise in December, 2017 on Long Island. The restaurant employs 90 people. Robey partnered with TD Bank, an SBA lender, to secure $1.9 million in financing, to which she added $600,000 of her own capital to make her dream a reality and open the franchise. Robey said that more than six lenders turned her and her sister down before TD Bank finally said “yes” with the SBA guarantee.
“There are so many entrepreneurs like myself who have great ideas that if, given the opportunity, could do really great things in business. SBA makes it possible for regular people to not only fulfill their dreams but to stimulate the economy and create jobs,” Robey said.
Twenty-five lenders have made SBA guaranteed loans in the New York District that did not participate in the program in FY 2017. Some of these are Five Star Bank, Berkshire Bank, Citizens Bank, North State Bank and First Chatham Bank.
TD Bank has guaranteed more loans than any other lender in the district (450). Newbank has loaned more dollars than any other lender (just-over $30 million).
Since opening on December 31, 2017, Robey said that business has been “phenomenal.”
“We’ve exceeded all of our projections, as well as the bank’s projections. We’ve broken a bunch of Dairy Queen sales records. We’re on target to be the fastest franchisee in the system to a million dollars…If it wasn’t for the SBA, none of this would be possible,” Robey said.
Goldberg added that this is just what the SBA guarantee is used for.
“The SBA loan guarantee is that extra nudge to help the bank say ‘yes’ when something in their usual underwriting criteria tells them to say ‘maybe’,” Goldberg said.
For more information about SBA’s loan programs, financial assistance and other services, visit www.sba.gov.
