Press-Republican

Local News

Related Photos

  • Kelli Catana

    images_sizedimage_116225054

Discussion

PLEASE NOTE: There is a 150 word maximum for comments. All comments greater than 150 words in length will be deleted in their entirety.

ALSO NOTE: Derisive name-calling of an individual or group will result in the entire comment being deleted. This includes the terms "stupid" and "idiot" and similar references.

Welcome to our new online comments feature. Before you can join the discussion, you must first register with Disqus and verify your email address.

Once you do, your comments will post after they have been reviewed by a moderator.

We welcome your thoughts and your opinions, including unpopular ones. We ask only that you keep the conversation civil and clean.

Not all comments are deemed printable. Some are disqualified, at the newspaper’s discretion, for a number of reasons. Here are some typical practices to avoid in trying to get your comment printed:

There is a 150 word maximum for comments. All comments greater than 150 words in length will be deleted in their entirety.

Don’t state as a fact something that is unsubstantiated or that our editors wouldn't know to be true.

Don’t presume someone’s guilt in a case when it hasn't been established by a court.

Don’t assail or impugn an identifiable individual or group. If you have that kind of criticism, sign your name and submit it as a Letter to the Editor. (There is some leeway on this in connection with public officials, but it is not unconditional.)

Don’t use profanity. This includes the term “tea bagger.”

Don’t be incendiary or tasteless. Those qualities are subjective, of course, and our editors will be the arbiters.

Do not identify yourself in the main content area of the article content form. Only by enforcing this rule can the moderators prevent unscrupulous commenters from falsely identifying themselves as someone they are not.

Don't type in all caps. It is considered the Internet equivalent of shouting.

In sports articles, do not criticize officiating.

Remember, moderators are not allowed to edit any article comments. If an article comment fails any of the above criteria, the entire comment will be deleted.

We monitor comments Monday - Friday, 8 a.m. to 8 p.m. Saturday and Sunday, 2 p.m. to 8 p.m. Approval of comments outside these times may be delayed.
comments powered by Disqus
April 26, 2009

Loan program targets troubled firms

Small Business Administration official addresses bankers

By DAN HEATH

PLATTSBURGH — The American Recovery and Reinvestment Act has led to changes and enhancements to U.S. Small Business Administration programs.

Bernard Paprocki, Syracuse District director of the Small Business Administration, gave details of some of those changes at a recent bankers roundtable in Plattsburgh.

Paprocki said everyone is waiting for details on the America's Recovery Capital loan program. It involves deferred-payment loans of up to $35,000, backed 100 percent by the Small Business Administration, to help small businesses make payments on existing loans for up to six months.

"This could be the one that saves businesses," Paprocki said. "It is something we think will have an immediate impact to keep businesses afloat."

LOAN REPAYMENT
The business won't have to start repaying the loan until one year after it is fully disbursed.

It can't be used to cover payments on a loan that was guaranteed by the Small Business Administration before Feb. 17, 2009.

Paprocki said the Small Business Administration doesn't make loans but provides insurance on loans. That can help reassure lenders and make them more likely to extend loans, he said.

North Country Small Business Development Center Regional Director Rick Leibowitz said the bill provides other increased small-business access to capital.

That includes an expansion of the Small Business Administration's micro-loan program, with up to $50 million available for loans that can be up to $35,000. Those loans come with technical assistance and training for every borrower.

"We're always excited when there's a new opportunity for small-business owners to get access to capital," he said.

FEES ELIMINATED
The American Recovery and Reinvestment Act also temporarily eliminates fees that small businesses and lenders had to pay to get loan guarantees, retroactive to Feb. 17. Those fees are based on the size of the loan and percentage guaranteed.

One example shows a borrower would save $13,500 in borrower guaranty fees on a $500,000 loan. Another showed $15,344 in participation- and processing-fee savings on a $720,000 504 Development Company Program loan.

Additionally, the loan-guarantee amounts were increased to up to 90 percent of the loan, from 75 percent to 80 percent previously. That increase is not retroactive to Feb. 17.

FEWER LOANS
Nationwide, loans with Small Business Administration protection are down about 50 percent.

The same holds true in the Syracuse District, made up of 34 counties, including Clinton, Essex and Franklin counties. In the tri-county area, those numbers were: 36 loans for $8.8 million in 2007, 32 loans for $8.7 million in 2008 and 11 loans for $1.2 million in the first half of 2009.

Paprocki said that is why the Small Business Administration is taking these steps.

"We need to continue to work hard to minimize the time frame of the recession. The important thing is to get the financial crisis under control and get banks back to lending."

Leibowitz said many community banks continue to make loans but might not pay for the Small Business Administration coverage. The smaller banks take the time to get to know their customers, so they often feel more comfortable when they do make a loan.

"I still see a lot of good things happening," he said. "I have clients starting businesses. That has not stopped."

SMALL BUSINESSES
More than 99 percent of businesses in New York are small businesses, Paprocki said, and 70 percent of all jobs are created by small businesses.

The flow of capital is the lifeblood of small businesses, he said, which makes bank lending vital to the economy.

"The way I look at it is SBA loans are on sale and will be on sale until the money runs out," Paprocki said.

That is forecast for sometime around the end of 2009, he said.

HOPEFUL
Nick Curtis, director of ComLinks Women's Entrepreneurial Business Center, said his office has helped launch more than 100 businesses and has helped existing businesses expand. He said the changes outlined were a positive step.

"In some instances, banks have not been so free in giving micro-loans. I think this should help start some new businesses and create some new jobs."

E-mail Dan Heath at: dheath@pressrepublican.com

Text Only | Photo Reprints
New Today
  • Attempted-murder trial set

    The case against Robert J. McCann, who is charged with trying to kill his former girlfriend at a secluded Westville site, begins Tuesday in Franklin County Court.

    Posted: 2 hours
Local News

Recent Article Comments
Albany Round-up

Photo of the Day
Strange News
Videos: Editor Picks
Obama Scraps Birth Control Mandate US Airmen's Killer Sentenced to Life in Germany Navy Names Ship for Gabrielle Giffords Raw Video: Deadly Blasts in Syria Romney Slams President Obama at CPAC Gingrich: Pres. Obama 'waging War on Religion' 5 Killed in Wrong-way Crash on I-10 in La. Uzbek Man Pleads Guilty in Plot to Kill Obama Denver's Largest-Ever Drug Bust Nets Dozens Marines: No Punishment for Nazi-like Flag Vets Look to Translate Military Skills Into Jobs Raw Video: School Bus Burst Into Flames LA School Reopens Amid Sex Abuse Scandal $25B Settlement Reached Over Foreclosure Abuses Pentagon: Allow Women Closer to Front Lines LA School in Sex Abuse Scandal Reopens Raw Video: Italy's Mount Etna Bursts Into Life Greeks March; Angry Despite Debt Deal Air Force Airlines: Leaders Get Polished Service Ga Girl Fights Off Kidnapper at Walmart