By Alex Robinson
The U.S. Small Business Administration has announced changes to its services after Asian-American business leaders said the agency could do more to help minority small business owners at a recent Queens hearing.
The new policy will take effect July 1 and is designed to make it easier for businesses to apply for government loans.
The House of Representatives’ Small Business Subcommittee on Contracting and Workforce held the hearing at Queens College in March to determine what the agency could do better to reach immigrant business owners.
The SBA is a federal agency tasked with helping small businesses get access to government contracts, loans, grants and counseling.
At the hearing, Asian-American business leaders argued immigrant businesses have a hard time reaching these services in Queens because of linguistic barriers.
More outreach specialists are needed at the SBA’s centers in order to meet this need, they said.
They also contended there is a lack of business development centers in the borough with only two in all of Queens.
“While there is still much more that the SBA can do, these changes are positive steps that will improve and increase access to capital for Queens small businesses,” said U.S. Rep. Grace Meng (D-Flushing), who serves as the ranking member of the subcommittee.
In an effort to speed up the lending process, the SBA’s new policy will no longer require banks that grant SBA loans of $350,000 or less to assess a business’ cash flow. It will also make it easier for entrepreneurs to apply for SBA-backed loans as it will require banks to look at a business’ credit rating rather than the owner’s personal rating when determining if they qualify for a loan.
The agency also announced it is planning to launch a new electronic lending platform to speed up and simplify the loaning process. The system, which will be up and running next year, will automate the uploading of documents and the generation of forms and allow for electronic signatures and data management.
“The SBA is a critical resource for small businesses, and it’s imperative that small-business owners in the borough be able to take full advantage of the valuable services that the agency offers,” Meng said.
Maria Contreras-Sweet became the SBA’s new administrator in April and Meng credited the conversations she had with Contreras-Sweet as well as the complaints heard at the hearing as catalysts to get the changes implemented.
Reach reporter Alex Robinson by e-mail at arobinson@cnglocal.com or by phone at 718-260-4566.
