Gillibrand: SBA microloan program would expand under federal bill

SYRACUSE — The U.S. Small Business Administration’s (SBA) microloan program would expand under legislation that the U.S. Senate is considering.

The proposed Microloan Modernization Act would expand the SBA program that provides loans and technical assistance to entrepreneurs who “face challenges” accessing the capital needed to start and expand small businesses because “they are often denied loans by banks,” the office of U.S. Senator Kirsten Gillibrand said in a Jan. 26 news release.

Gillibrand discussed the legislation during a Jan. 26 appearance at Right Price Companies Inc. at 4726 S. Salina St. in Syracuse. 

The SBA microloan program makes direct loans and grants to intermediary, nonprofit organizations that in turn provide microloans of up to $50,000 and business-based training and technical assistance to startup and growing small businesses, according to Gillibrand’s release. The average loan amount is $13,000.

The legislation would “strengthen” the SBA microloan program by raising the total limit on outstanding loans to intermediary lending organizations, which would allow for more loans to be made to women, minority, and other business owners, according to Gillibrand’s release.

The total amount of loans outstanding and committed to any intermediary … from the SBA business loan and investment fund would be increased from $5 million to $6 million for the remaining years of the intermediary’s participation in the program.

Supporting the bill

In her remarks at the Right Price Companies, Gillibrand explained why she is supporting the proposal.

“The banks either say that the startup business is too risky for an investment or that they don’t have enough credit history to let the bank feel comfortable lending to them,” Gillibrand said. 

Many of those same entrepreneurs, Gillibrand noted, also “struggle” to get the attention of early-stage and venture-capital investors who help other startup businesses “get off the ground.” 

As a result, she added, too many entrepreneurs are “stopped in their tracks” when they try to get their first loan from a bank to start their businesses. 

“And more often than not, the people who lose out are women and minority-owned businesses. So, we have to fix this … We have to make our credit system fair for any entrepreneur in the state who’s willing to take a risk and strengthen their community by starting their own business,” said Gillibrand.

“That’s been one of the challenges since day one … being that we are first-generation entrepreneurs, we had to figure a lot of things out and one of the things that’s been difficult to figure out is access to capital,” Darin Price, COO of Right Price Companies, said.

On its website, Right Price Companies describes itself as “the only dual certified, woman/minority owned furniture distributor in upstate New York,” specializing in commercial furniture and case goods sales. 

Besides additional loans, the proposal would also expand opportunities for more hands-on training assistance to help small-business owners succeed. 

The U.S. House of Representatives has already approved the legislation, which Gillibrand describes as “bipartisan.” 

Sen. Deb Fischer (R–Neb) is the bill’s lead sponsor, Gillibrand noted in her remarks.

The bill is also co-sponsored by U.S. Senators Tim Scott (R–S.C.), Chris Coons (D–Del.), Jeanne Shaheen (D–N.H.), Joe Donnelly (D–Ind.), and Gary Peters (D–Mich.).

The proposed legislation would provide “another important tool” in the effort to “build and grow” the small-business community, Robert Simpson, president and CEO of CenterState CEO, said in his remarks at the event.

“I want to make sure that the Senator knows that we understand that it’s incumbent on us here in our community to create our own resources and to do work, too. We appreciate and need the support of the federal government but it’s equally important for us in Central New York to be intentional about our own efforts to support entrepreneurs,” said Simpson.

Since its inception, the SBA microloan program has delivered more than $722 million in loans to small businesses across the U.S. that have created or retained 212,000 jobs. The program loaned more than $8.4 million to 821 New York entrepreneurs and business owners “in fiscal year 2017 alone,” Gillibrand’s office said.

SYRACUSE — The U.S. Small Business Administration’s (SBA) microloan program would expand under legislation that the U.S. Senate is considering.

The proposed Microloan Modernization Act would expand the SBA program that provides loans and technical assistance to entrepreneurs who “face challenges” accessing the capital needed to start and expand small businesses because “they are often denied loans by banks,” the office of U.S. Senator Kirsten Gillibrand said in a Jan. 26 news release.

Gillibrand discussed the legislation during a Jan. 26 appearance at Right Price Companies Inc. at 4726 S. Salina St. in Syracuse. 

The SBA microloan program makes direct loans and grants to intermediary, nonprofit organizations that in turn provide microloans of up to $50,000 and business-based training and technical assistance to startup and growing small businesses, according to Gillibrand’s release. The average loan amount is $13,000.

The legislation would “strengthen” the SBA microloan program by raising the total limit on outstanding loans to intermediary lending organizations, which would allow for more loans to be made to women, minority, and other business owners, according to Gillibrand’s release.

The total amount of loans outstanding and committed to any intermediary … from the SBA business loan and investment fund would be increased from $5 million to $6 million for the remaining years of the intermediary’s participation in the program.

Supporting the bill

In her remarks at the Right Price Companies, Gillibrand explained why she is supporting the proposal.

“The banks either say that the startup business is too risky for an investment or that they don’t have enough credit history to let the bank feel comfortable lending to them,” Gillibrand said. 

Many of those same entrepreneurs, Gillibrand noted, also “struggle” to get the attention of early-stage and venture-capital investors who help other startup businesses “get off the ground.” 

As a result, she added, too many entrepreneurs are “stopped in their tracks” when they try to get their first loan from a bank to start their businesses. 

“And more often than not, the people who lose out are women and minority-owned businesses. So, we have to fix this … We have to make our credit system fair for any entrepreneur in the state who’s willing to take a risk and strengthen their community by starting their own business,” said Gillibrand.

“That’s been one of the challenges since day one … being that we are first-generation entrepreneurs, we had to figure a lot of things out and one of the things that’s been difficult to figure out is access to capital,” Darin Price, COO of Right Price Companies, said.

On its website, Right Price Companies describes itself as “the only dual certified, woman/minority owned furniture distributor in upstate New York,” specializing in commercial furniture and case goods sales. 

Besides additional loans, the proposal would also expand opportunities for more hands-on training assistance to help small-business owners succeed. 

The U.S. House of Representatives has already approved the legislation, which Gillibrand describes as “bipartisan.” 

Sen. Deb Fischer (R–Neb) is the bill’s lead sponsor, Gillibrand noted in her remarks.

The bill is also co-sponsored by U.S. Senators Tim Scott (R–S.C.), Chris Coons (D–Del.), Jeanne Shaheen (D–N.H.), Joe Donnelly (D–Ind.), and Gary Peters (D–Mich.).

The proposed legislation would provide “another important tool” in the effort to “build and grow” the small-business community, Robert Simpson, president and CEO of CenterState CEO, said in his remarks at the event.

“I want to make sure that the Senator knows that we understand that it’s incumbent on us here in our community to create our own resources and to do work, too. We appreciate and need the support of the federal government but it’s equally important for us in Central New York to be intentional about our own efforts to support entrepreneurs,” said Simpson.

Since its inception, the SBA microloan program has delivered more than $722 million in loans to small businesses across the U.S. that have created or retained 212,000 jobs. The program loaned more than $8.4 million to 821 New York entrepreneurs and business owners “in fiscal year 2017 alone,” Gillibrand’s office said.