In the last decade, the Queens population has boomed, and so has its business community. Through hard work and a little ingenuity, local entrepreneurs have revitalized neighborhoods from Flushing to Astoria.
Today, there are nearly 200,000 homegrown firms driving the Queens economy. Those businesses cater to the unique needs of our neighbors, and create high wage jobs for our workers. However, in the face of a national recession and a contracting local economy, even our most resilient businesses are suffering.
It’s no secret that the last year has been hard on New York. Like businesses everywhere, area startups are feeling the effects of slowed spending and tightening credit. The Economic Recovery Act will help ease that pain. In the next two years, the stimulus will create 90,000 new jobs for New Yorkers, and help small firms access the capital they need to keep their doors open.
One of the greatest challenges facing small firms is the frozen credit market. The fact is small businesses simply cannot get loans to expand and hire more workers or, for that matter, to stay afloat.
The Recovery Act will help get credit moving again, unlocking $21 billion in new lending and investment. As part of this process, the Small Business Administration, or SBA, will make loans less expensive for borrowers. It will also guarantee more of a loan – as much as 90 percent – a provision that will encourage banks to lend to small firms again.
As chair of the House Small Business Committee, I know these are challenging times for entrepreneurs. Many of these men and women are straining to meet even basic obligations. A new Recovery Act initiative, called the Small Business Stabilization Financing Program, will throw our small businesses a lifeline. This new initiative offers entrepreneurs the option of taking a $35,000, no-interest SBA loan. That is $35,000 that they can put towards fundamentals like payroll and inventory, and which they will not have to repay for a full year.
In addition to these important lending provisions, the Recovery Act will open a world of opportunity to small firms seeking federal contracts. New York City is slated to receive $5 billion in stimulus funds, a significant chunk of which will go toward infrastructure spending. That means everything from modernizing public housing to paving roads. Because small firms do 90 percent of that work, they stand to benefit considerably.
Here in Queens, we are depending on our entrepreneurs to spark an economic recovery. However, that does not mean we want them to go it alone. The SBA offers small business development programs at centers throughout New York City. There are two in Queens, one located at LaGuardia Community College, and the other at York College. There is also a Women’s Business Center at the Queens Economic Development Center, which offers female entrepreneurs the resources they need to start and build their businesses.
Times may be tough, but the entrepreneurial spirit is still alive and well. With the business world increasingly rejecting the policies of the past, now is the time for small business owners to step up to the plate. Only they can bring the diversity and dynamism our communities want, and the recovery our economy needs.
Nydia M. Velázquez is a member of Congress representing the 12th District and the chair of the House Committee on Small Business.
