The Small Business Administration (SBA) gave out 256 loans in Brooklyn, up from 140 in 2009. In Queens, 214 loans were distributed, up from 185 in 2009. The overall loan amount to the two boroughs increased by 32 percent and 41 percent, respectively.
“Small businesses are the backbone of New York City's economy, and they have borne the brunt of our nation's recent downtown,” said Weiner. “The increase in loans to small businesses is extremely encouraging, because access to credit is vital to helping these businesses get back on their feet and putting Americans back to work.”
The spikes in lending were a result of small business legislation enacted by Congress.
February 2009's Recovery Act increased the SBA loan guarantee amount from 75 percent to 90 percent, making banks responsible for only 10 percent. The Recovery Act's loan guarantee increase was reauthorized by the Small Business Jobs Act (September 2010), which freed up $30 billion for community banks to lend only to small businesses and provided small businesses with $12 billion in new tax cuts.
Signed into law in March 2010, the HIRE Act grants a payroll tax holiday to businesses that hire unemployed workers; if businesses retain those employees for a full year, they receive an income tax credit of $1,000.
On Friday, Weiner joined Kevin Kim, owner and operator of a Super Associated market at 155-15 Aguilar Avenue in Kew Gardens Hills, for a tour of the newly renovated store. Kim recently received a $1.3 million SBA loan, which he used to replace the floors, expand the store, upgrade the scan system and hire 40 additional employees.
“[Because of this loan] I can improve service in every aspect for the community and I can hire more employees like Marlin and Danny,” said Kim, referring to his newly hired head cashier and deli manager. “My customers are happy, I'm happy, my employees are happy, everybody's happy.”