Small business loans up 41% in Queens

Congressmember Anthony Weiner presented the results of a new study in front of Associated Supermarket in Kew Gardens showing that the distribution of small business loans in Queens are up 41 percent from 2009 with more than $69 million in lending distributed in the borough alone in 2010.
Kevin Kim, the owner of Associated Supermarket, received a $1.3 million loan from the Small Business Association (SBA), enabling him to hire 40 more workers and renovate a large portion of his store.
“We can provide a much better service to our customers,” said Kim on Friday, November 5. “My customers are happy. I am happy. Our employees are happy . . . all of this happened because of the SBA loan.”
According to Weiner, the major reason why loans are on the rise – not only in Queens, but throughout rest of New York City – is the Recovery Act, which made it easier for banks to offer SBA loans to businesses by increasing the loan guarantee amount from 75 percent to 90 percent.
“By making that change in guarantee, more banks are willing to process small business loans like the one Mr. Kim got,” said Weiner, who applauded the business owner’s willingness to hire new workers. “With additional jobs comes the gradual improvement of the economy.”
Recently signed into law in September, the Small Business Jobs Act reauthorized the Recovery Act’s loan guarantee increase and freed up $30 billion for community banks to lend strictly to small businesses while concurrently providing $12 billion in new tax cuts. The 185 SBA loans issued in Queens during 2009 have already been surpassed by 29 loans in 2010. Weiner believes it’s a sign of a rebounding economy.
“We are slowly but surely on the right direction and these SBA numbers are an indication of that,” said Weiner.
Across the city, SBA loans rose 44 percent, from 655 loans in 2009 to 940 so far this year.

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