BINGHAMTON — U.S. Senator Kirsten Gillibrand (D–N.Y.) is supporting a bill that would increase the availability of affordable loans for small manufacturers through the U.S. Small Business Administration’s (SBA) 7(a) and 504 loan-guarantee programs. The “bipartisan” legislation would increase the loan-guarantee limit for loans to small manufacturers, eliminate a penalty that new manufacturers are required […]
BINGHAMTON — U.S. Senator Kirsten Gillibrand (D–N.Y.) is supporting a bill that would increase the availability of affordable loans for small manufacturers through the U.S. Small Business Administration’s (SBA) 7(a) and 504 loan-guarantee programs.
The “bipartisan” legislation would increase the loan-guarantee limit for loans to small manufacturers, eliminate a penalty that new manufacturers are required to pay when applying for an SBA 504 loan; eliminate loan fees for loans under $350,000, and cut loan fees in half for larger loans, Gillibrand’s office said in a news release issued March 9.
The Democrat from Guilderland that day joined community leaders and the co-owners of 3i Graphics & Signs in Binghamton to discuss the proposed “Investing in America’s Small Manufacturers Act.”
“Too many small manufacturers in New York still struggle to access the capital they need from banks to expand their businesses and create more jobs in their communities,” Gillibrand said in the release. “The bipartisan [legislation] would help ensure that every hardworking small manufacturer has the capital and tools necessary to succeed. If we really want to fix our economy, then we need to start rewarding work again, and this bipartisan bill is a good place to start.”
Both co-owners of 3i Graphics & Signs applauded the proposed legislation.
“We have many loyal and wonderful customers in the region. Having worked through the financial crisis in 2008 when we first attempted to purchase this company, we know first-hand the value of SBA guarantees to incentivize banks to lend to business,” said Eric Olsen, co-owner of 3i Graphics & Signs. “We are grateful Sen. Gillibrand chose 3i Graphics & Signs as the backdrop to introduce [the] legislation.”
The Investing in America’s Small Manufacturers Act would also increase opportunities for more education assistance to “help small manufacturers succeed,” Gillibrand said.
The average approved SBA 7(a) loan in fiscal year (FY) 2017 was $407,616, and about 34 percent of all 7(a) loans exceeded $2 million. In FY2017, the SBA approved nearly 69,000 7(a) and 504 loans, providing more than $30 billion in lending to small businesses and supporting more than 630,000 jobs.
“As a co-owner of a small business who utilized the SBA, we understand the importance of the SBA guarantee. Any improvements to that process or that guarantee are certainly helpful,” added Nick Taro, 3i Graphics & Signs co-owner along with Olsen. “It’s also important that small businesses be supported by their local community — other businesses, schools and organizations who ‘buy local’ and keep the money in Broome County are very much appreciated. We make every effort to do that as well.”
The bill is sponsored by U.S. Senator Chris Coons (D–Del.) and is co-sponsored by U.S. Senator Cory Gardner (R–Colo.). The Washington, D.C.–based National Association of Manufacturers also supports the bill, according to Gillibrand’s office.
