Rep Weiner Unveils New Study Showing Vacancy Rates For Queens Business Strips Over 12%

Outside of a shuttered storefront on Jamaica Avenue, Rep. Anthony Weiner (D – Queens and Brooklyn) State Senator Joseph Addabbo, Jr. and Assemblyman Michael Miller announced the results of survey showing that some of Queens’ busiest shopping streets are suffering from an average 12% vacancy rate, with 1 in 5 stores closed along a busy stretch of Jamaica Avenue.

Today, Rep. Anthony Weiner (D – Brooklyn & Queens), a member of the House Energy and Commerce Committee, unveiled a survey of 10 of Queens’ busiest shopping streets showing an average vacancy rate of 12%, with up to 1 in 5 stores closed on one busy stretch of Jamaica Avenue.

Rep. Weiner’s office surveyed Queens neighborhood shopping strips in Rockaway, Rego Park, Flushing, Richmond Hill, Forest Hills, Jamaica, Sunnyside, Astoria, Glendale and Bayside. Throughout the Borough, an average of 12% of all storefronts were closed or closing, with 1 in every 5 stores vacant at shopping strips in Richmond Hill and Rego Park.

Highlights from Weiner’s Study:

• Richmond Hill has the highest vacancy rate of 20%
• The neighborhood of Flushing had the lowest vacancy rate at 7%
• Sunnyside and Glendale shopping strips were also among the lowest vacancy rates – at 8%
• A total of 206 storefronts were closed, averaging 20 closed stores per shopping strip
• Jamaica Avenue had 73 vacant storefronts – more than 1 in every 5 stores
• Only 4 of the neighborhoods – Flushing, Forest Hills, Sunnyside and Glendale – had business strips with vacancy rates below 10%

“Small businesses are the backbone of New York City’s economy, and they have borne the brunt of our nation’s recent downturn,” Weiner said. “Helping small business owners get back on their feet should be our number one priority.”

Weiner’s 5 Point Plan:

Rep. Weiner is proposing the following 5-point plan to help:

Tax breaks for small business offering health insurance

The recent Affordable Care Act includes $40 billion in tax credits for small businesses to help them offer employee coverage. The bill provides tax credits starting in 2010 to small businesses with fewer than 25 employees and average annual wages of less than $50,000 that purchase health insurance for employees. It is estimated that 60% of American’s businesses will qualify for these small business tax credits under the bill.

Tax break for new hires

Congress recently passed the $15 billion HIRE Act to spur job creation. The new payroll tax exemption included in the bill would create a common-sense, targeted, and effective way to encourage employers to begin hiring unemployed workers. According to Mark Zandi of Moody’s Economy.com, it is estimated to spur about 300,000 new jobs. The payroll tax exemption provides businesses with an exemption from Social Security payroll taxes for every worker hired in 2010 who has been unemployed for at least 60 days. The bill would also provide an additional $1,000 income tax credit for every new employee retained for 52 weeks.

Greater access to capital small business loans

The House recently passed the Small Business Jobs and Credit Act to provide banks with the opportunity to make more loans to small businesses. The legislation created a new $30 billion lending fund for small and medium sized community banks to leverage up to $300 billion in lending. Rep. Weiner is calling on the Senate to pass this bill.

Grace Period for Late Parkers
 

Consumers must have access to small businesses in order for the stores to succeed. A grace period for late parkers allows middle-class New Yorkers, who are generally doing 4 things at once, to shop in local businesses without leaving the store halfway finished, and the store owners halfway compensated for the products they provide. The extra five minutes in a parking spot without feeding the meter are worth keeping our local businesses open and thriving.

Mobile Permit and Adjudication Vans
 

Business owners too often need to drive out to the far reaches of their city borough to wait in line for hours and deal with local bureaucratic agencies in hopes of solving their permit and violations issues. The City should be locally available with mobile permit and violation adjudication vans so that business owners needn't waste a day's time and effort in wrestling with these agencies.

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Councilmembers Crowley and Yassky Issue Guide to Federal Stimulus Package for Small Businesses...

Council Member Elizabeth S. Crowley and Council Member David Yassky, Chair of the Council’s Committee on Small Business, today issued a guidebook that will help small business owners navigate the benefits made available to them in the American Recovery & Reinvestment Act of 2009. The stimulus package provides $288 billion in tax relief to individuals and companies, but it is difficult to understand the particular programs made available in the 1,000 page law.

“Small businesses are the lifeblood of the City’s economy, and during these difficult economic times, it is critical that small business owners understand all of the benefits and programs that are available to them through the federal stimulus package,” Council Member Yassky said. “While I do believe that we need to do more for our small businesses, President Obama’s American Recovery & Reinvestment Act lays the groundwork for economic recovery, and we hope that this guidebook will provide the roadmap to get us there.”

“Local businesses are a necessity for economic stability,” said Council Member Elizabeth Crowley. “As we face great challenges, we must revaluate how we spend our money. The best way to contribute to our economy and to a sustainable city is to buy locally grown, produced and manufactured goods. The federal government is creating public and private partnerships with the Stimulus dollars. It is essential that we make sure that entrepreneurs and local businesses of all sizes are aware of how to bring those dollars to our neighborhood’s main streets.”

Small businesses are the backbone of this economy – about 95% of businesses in NYC are considered small businesses - and throughout this City, in every borough, these businesses are feeling the drastic effects of the credit crunch. The guidebook will bring the stimulus incentives directly to the New York City small business owner – incentives ranging from tax breaks for purchasing new equipment and hiring veterans, to training vouchers for small business owners’ employees, and special incentives for installing energy efficient windows.

They were joined by representatives of the Manhattan, Queens, Brooklyn, and Bronx Chambers of Commerce on the steps of City Hall on Sunday, where the groups applauded the Council’s efforts in this area and pledged to distribute the guidebooks to their members.

To get copies of the guidebook, please contact Council Member Crowley’s office at (718) 366-3900.

Chairman Towns Headlines CBC Delegation Meeting with President Obama

U.S. Representative Edolphus Towns, D-NY, today joined the Congressional Black Caucus (CBC) for its first meeting with President Barack Obama since he took office last month. Mr. Towns, who is the Chairman of the House Committee on Oversight and Government Reform, was among a select group of CBC members who spoke at the meeting, and in his remarks Chairman Towns discussed key issues currently facing the Oversight and Government Reform Committee. The CBC meeting is the second visit Chairman Towns made this week to the White House. On Monday, Chairman Towns participated in President Obama’s White House Fiscal Summit, which brought together select members of Congress, economists, unions, business leaders, lawmakers, and advocacy groups to discuss the most pressing issues currently facing our country.

Below are Chairman Towns’ remarks as prepared for delivery:

Remarks of Chairman Towns

High Risk Issues

Mr. President, thank you for meeting with us today. You have pledged to take a hard look at what works and what doesn’t in government. I sent a letter in January to Secretary Gates requesting a meeting to discuss eight areas in DOD operations that are at high risk of fraud, waste, abuse and mismanagement according to the GAO. These risks cut across most areas of DOD’s operations and include DOD’s longstanding inability to deliver its major weapon system acquisitions on time and at promised costs and capabilities. With the country facing its most serious financial and economic problems in decades and fighting two wars, we cannot afford for the Department to get less than the maximum value from the resources the Congress and the American taxpayer provide it.

I will be asking for similar meetings from other Cabinet-level officials about projects within their area of responsibility that appear on GAO’s high risk list, including oversight of financial institutions and markets and food safety. Through this process I hope to help you fix some long standing problems that have lacked attention and have resulted in unnecessary government waste. I note that agency Inspectors General have made approximately 13,000 recommendations that have not been implemented. I would appreciate your support for these critically important meetings.

Oversight of the economic recovery package will be a major portion of the Committee’s work this Congress. In overseeing this spending, we will work closely your accountability board, as well as agency IG’s and GAO. However, I am concerned that the legislation will strain the ability of the current federal acquisition workforce to effectively manage the huge volume of spending in the bill. I am also concerned that the State and local IT infrastructure will not be up to the task of handling the data requirements for funding, transparency and accountability.

Small Disadvantaged Businesses

Mr. President, if the larger businesses community is sick, Small Disadvantaged Businesses are on life support. As Chairman of the House Committee with procurement jurisdiction, I can tell you that during the past 8 years much of the progress we have made in overcoming discrimination, and providing fair contracting opportunities for minority businesses has been lost. The bundling of federal contracts, which priced most DBE’s out of competition, became common administration practice. Sole contracts increased to favored businesses, like Haliburton, while sole source contracted awarded through the 8(a) program dried up. These practices, coupled with the current economic slow down, means that we may lose a generation of minority businesses if we do not work quickly.

Efforts were made to reverse these practices by including specific minority business language in the TARP funding bill. However, the results to date have been disappointing. Of the 14 prime contracts awarded by Treasury, none of the contracts have gone to minority businesses. While all 14 businesses have subcontracting plans that spell out plans to use minority businesses, my staff has been unable to get sufficient information to determine whether the prime contractors are meeting their subcontracting goals.

I think that the Recovery and Reinvestment Act presents a once in life time opportunity to assist the small disadvantaged business community. However, unless we develop the appropriate small business infrastructure, this opportunity will be missed. I would recommend the following steps: (1) I think you should direct each agency with contracting authority under the recovery legislation to identify those contracts and subcontracts that they anticipate could be preformed by Small Disadvantaged businesses, this should be done in consultation with SBA; (2) set appropriate contracting and subcontracting goals and (3) establish an oversight task force within OMB to track and to hold agencies accountable for meeting those goals. These steps are consistent with federal procurement laws and existing Executive orders.

Mr. President, I am deeply concerned that without some specific direction from you and your team, the current acquisition workforce will simply fall back on what they have been doing during the past 8 years, which is to have limited competition and award large contracts to favored majority contractors.

I have seen what effective procurement policy and Executive support can achieve. President Clinton made increased access for disadvantages businesses in Federal contracting an important priority for his administration by issuing Executive Order 13170. Unfortunately, we have lost most of the progress that was made during that time period.

You have a unique opportunity with the Recovery and Reinvestment Act to recapture that progress.

The Federal Workforce

Discrimination and the lack of opportunities for racial minorities continue to be central issues within the federal workforce, particularly at the senior levels. While we have made significant progress much more remains to be done. I would urge you to pay special attention to your sub cabinet level appointments, appointments to the Senior Executive Service and to look very carefully at any the potential for discrimination in any pay-for-performance system you may be considering.

Last September, an arbitrator ruled that the SES’s pay-for-performance system discriminated against African Americans. In addition, analysis of DOD’s National Security Personnel System indicates that African Americans are receiving significantly lower performance based pay than their white counterparts.

I would urge you to carefully balance your need for effective tools to attract and reward top talent, with the need to ensure that all employees are treated fairly in promotions and pay decisions.”

2010 Census

Mr. President, all of us are well aware that the 2010 Decennial Census is quickly approaching and that its results will have a deep and lasting impact on our communities.

As the Chairman of the House Committee that oversees the Census, I am committed to vigorous, bipartisan oversight of its implementation. I appreciate your respect for this Committee’s responsibility to conduct Census oversight and for making it clear that your administration will not interfere with our important work. The success of the 2010 Census, given its implications and magnitude, is one of the Oversight Committee’s highest priorities.

Mr. President, the success of the 2010 Census is a priority for all of us here today. Along with apportioning and redistricting Representatives in the House, it will determine the allocation of billions of dollars in federal assistance to state and local governments. The economic crisis has made certain that our communities, some of which may already be struggling, cannot afford to lose any of these critical dollars.

Unfortunately, your administration inherited a Census Bureau that has failed to demonstrate its constitutionally-mandated responsibility to successfully carry out the 2010 Census. We have already been warned by GAO that the 2010 Census is in serious trouble and has been placed on GAO’s list of programs at high risk. We still do not know if all of the Bureau’s operations and systems, particularly those that will be used for the first time in 2010, will work together under the pressure of the census. With less than eleven months to go until the launching of the 2010 Census, the Bureau has little time to improve its capabilities.

Certainly the $1 Billion in additional funding for the Census Bureau that was included in the Recovery and Reinvestment Act will help the Bureau as it prepares for 2010. But given the existing problems at the Census Bureau and a critical need for the Census to succeed, I urge you to provide ample funding for the Bureau in your budget proposal.

I am also deeply concerned with the current leadership void at the Census Bureau. We need to have a Bureau director nominated and confirmed as soon as possible. Then we can focus on the important work of organizing the Census Bureau and ensuring that it is prepared to support the activities of the 2010 Census.

During the weeks and months to come we will be working to put together press conferences and other Census-related events in our districts that will help educate and encourage the participation of our constituents. This effort will help in assuring our communities that information gathered by the Census Bureau is strictly confidential, and that their cooperation will help the government determine where vital resources such as increased food stamp assistance and funding for public housing are needed.

Mr. President, the stakes are too high for the 2010 Census to fail and I am asking you to support our efforts that will help guarantee its success. We need to have a Census Bureau director nominated and confirmed as soon as possible, ensure that proper resources are being directed to the Census Bureau, and we must work to educate our communities about the Census and encourage their participation.

Chairman Towns Raises Concerns About Government Contracts at White House Fiscal Summit...

U.S. Representative Edolphus “Ed” Towns (D-NY), Chairman of the Committee on Oversight and Government Reform, today participated in a White House fiscal summit of members of Congress, independent experts, unions, and advocacy groups to discuss ways to cut the trillion-dollar deficit currently facing the nation.

Chairman Towns was invited to the summit by President Obama and took the opportunity to raise his concerns about ongoing contracting and procurement problems that will affect the distribution of federal funds. He also offered several ideas about how to prevent waste, fraud, and abuse of taxpayer dollars.

Chairman Towns maintains a hard-line stance on the importance of increasing transparency and compliance with the minority and women-owned business mandates as we stimulate local economies, especially in communities like Brooklyn, New York.

“Given the current fiscal crisis, I want to make sure the federal government spends money to help stimulate the national economy and that MWBE’s – like the ones that employ people in local communities all across New York – are not forgotten during this process,” said Rep. Towns. “There are more than 215,000 New York jobs at stake.”

Chairman Towns recommended that the government make a concerted effort to break its pattern of engaging primarily with mega-contractors. Often, small and minority-owned businesses nationwide cannot get contracts with the government, preventing critical dollars from reaching communities and preventing potentially more innovative companies from offering their services.

“One reason why we tend to rely only on a few mega-contractors is that we don’t have the personnel to administer more, smaller contracts,” said Towns. “We are essentially contracting-out the acquisition and project management functions of the federal government.”

Chairman Towns also noted that the government must look at its basic contracting efforts and begin to hire and better-train contracting officers. By doing so, many of these problematic contracts and cost overruns could be detected and prevented.

Chairman Towns is set to hold a hearing on Thursday to look into how convicts and con artists – people who have been formally debarred from federal contracting – continue to receive new work because the databases created to maintain this information are out of date and inaccurate.

New Study Shows Many Vacant Stores in Queens - 211 Queens Storefronts Shuttered on 10 Strips

Here's a prime example of what Congressman Weiner is talking about...After being in business on Jamaica Avenue for the last 70 years, Jason's of Woodhaven is closing...check out the pics and video by Ed on Project Woodhaven Bids Farewell to Jasons...

“Stimulus Money Will Jump Start Queens Businesses,” Weiner Says

The knee-deep recession is forcing small businesses throughout Queens to close shop at an alarming rate, according to a new study released today by Representative Anthony Weiner (D-Brooklyn and Queens), a member of the House Commerce Committee.

Highlights from the Weiner Study

§ Out of a total 1,730 stores surveyed, 211 are closed or in the process of closing.

§ 12% of community stores in Queens are vacant.

§ Vacancy rates have doubled from the past year.

§ 21 is the average number of closed stores per neighborhood.

§ Most Vacant Stores: Jamaica Avenue strip with 80 closed stores out of 335.

§ Highest Percentage of Vacancy: Rockaway, with 17 out of 40 stores, or 42.5% closed.

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This week, President Obama and Congress gave a major economic boost to small businesses in New York City. The final economic stimulus package that was signed by the president will create or save approximately 30,000 jobs in Queens – more than 90,000 jobs overall in New York City.

New York City has more than 200,000 small businesses, accounting for two-thirds of the city’s private sector jobs. Of these, 96% have fewer than 50 employees. The recently signed stimulus economic stimulus package will help ease the burden on small businesses.

New Relief for Small Businesses

§ Provides $750 million to improve existing SBA loan programs and to create new ones

§ Offers relief for small businesses by boosting the write-off for equipment and property expenses to $250,000 – up from $125,000.

§ Allocates $375 million to eliminate and reduce government fines and fees to borrowers and lenders who are part of existing loan programs.

§ Makes it easier for small businesses to free up their funds for investment and job creation. The stimulus bill increases the carryback of net operating losses from 2 years to 5 years.

Rep. Weiner said, “When the economy catches a cold, small businesses catch pneumonia. Too many community shops – the backbone of the City’s economy, are hit hard by this downturn. The stimulus package will help jump start Queens businesses.”

Weiner’s office surveyed 10 neighborhood shopping strips in Queens and collected data from the Queens Chamber of Commerce and Queens BIDS. Neighborhoods surveyed include Myrtle Avenue, Kissena Boulevard, Bay Terrace Shopping Center, Sutphin Boulevard, Sunnyside, Austin Street, Woodhaven Boulevard, Jamaica Avenue, and Beach 116^th Street.

Schumer, Weiner Discuss Provisions in Stimulus Package That Have Not Been Highlighted and Are Not Well Known But Help New Yorkers in a Big Way

Major Aid for Parents with Kids in College, Subway, Rail and Bus Commuters, Help for Small Business and Many Others

President Obama to Sign Stimulus Package in to Law Today

Officials Will Also Release Detailed Report on Economic Boost For NYC

U.S. Senator Charles E. Schumer and Representative Anthony Weiner today discussed several smaller, not widely noticed, provisions in the economic stimulus package that could end up saving middle class New Yorkers hundreds of dollars every year. Schumer and Weiner will list the top five tax-breaks and other provisions that both officials fought to have as part of the final package, including a $2,500 tax credit on college tuition costs, a doubling of the federal mass transit benefit, and eliminating onerous fees and red tape on government small business loans. The officials also released a new report on the overall economic benefit of the package on the New York City economy but will highlight some of the smaller provisions that will help create jobs and give families much needed financial relief.

“This is a huge package that will be a big help for New York’s economy, but there are also several smaller provisions that will pack a real punch for New York families,” Schumer said. “These smaller tax breaks and benefits will give middle class New York families some much needed relief during these difficult times and, taken together, can save those families thousands of dollars over the next two years. We need to use every tool the federal government has to get these economy going again and this economic stimulus package, from the top to the bottom, does just that.”

“This one package is going to do more to help New York's middle class than any in recent memory. It cuts taxes on our families and it eases the burden on our small businesses. The Big Apple is going to get a major economic boost just when it needs it,” Weiner said.

Tax Break for Middle Class Parents Struggling to Pay High Price of College Tuition

The final economic recovery bill includes a version of Senator Schumer’s new tax credit for families paying college tuition. Senator Schumer was the leading advocate for adding this provision to the package. The new credit of $2,500 is up to 40 percent refundable, making it a significant improvement over the current HOPE credit, which has a maximum benefit of $1,800 and is non-refundable, and greatly increasing the benefit for those families that currently take the deduction for college tuition (which maxes out at a benefit of $600 or $1,000, depending on a family’s tax bracket).

In 2007, more than 550,000 New York families claimed either the HOPE credit or the college tuition deduction. The new tax credit should benefit hundreds of thousands of additional families due to three factors: (1) the benefit can be used for more than one student in the household; (2) the new credit is partially refundable, meaning that the millions of New York families with incomes too low to owe federal income taxes can still claim a partial benefit; and (3) the income limits are slightly higher than in current law, reaching zero at $75,000 for singles and $150,000 for married. In order to be eligible for the new credit, students must be enrolled at least half-time. In the 2008-2008 academic year, there were 826,000 full-time students enrolled in institutions of higher education in New York State, as well as 339,000 part-time students.

Tax Break for Subway, Rail, and Bus Commuters

The final legislation includes a proposal to bring parity to tax-free commuting benefits offered by employers. Until now, employers could offer their workers a tax-free mass-transit benefit of $120 a month, but the maximum benefit for monthly parking costs was $230. The economic recovery act brings the transit benefit up to $230 a month, the same as the parking benefits.

According to the TransitCenter, this legislation will help the 15,000 employers and 650,000 employees in the NYC metro area who utilize the transit benefit save money. Under the provisions of this legislation, employees can save up to $1,000 a year, which is an additional $440 a year over current law if their transit commute exceeds the current monthly cap of $120/month. In total, this provision is expected to save commuters in NYC an additional estimated $37.5 million a year.

Makes It Easier for Small Businesses to Secure Gov’t Loans

The stimulus bill appropriates $730 million to improve existing SBA programs and create new initiatives that will address the current economic crisis. As a result of the financial crisis and the recession, small business lending in the SBA’s flagship loan programs – 7(a) and 504 programs – is in a freefall. The bill allocates $375 million to allow for temporary waivers or reductions in the fees the SBA charges to lenders and borrowers in the 7(a) and 504 loan programs. When determining the amount and structure of the waivers/reductions, the bill requires the SBA to give borrowers and smaller banks priority in receiving fee relief.

Tax Incentives for Small Businesses
*NYC has more than 200,000 companies qualify as small businesses, accounting for 2/3 of the city’s private sector jobs. (Of these, 96% have fewer than 50 employees).
*Temporarily increases the amount that small businesses can write-off for capital expenditures (i.e. to acquire or upgrade equipment, property, or industrial buildings) to $250,000, up from $125,000.
*5-year carryback of net operating losses for small business, up from 2 years. A net operating loss occurs when tax-deductible expenses exceed taxable revenues for a taxable year.
*$730 million to improve existing and create new Small Business Administration (SBA) loan programs.
*$375 million to allow for temporary waivers or reductions in the fees the SBA charges to lenders and borrowers in the existing loan programs.

Funding to Repair Elevators at NYC Public Housing Complexes

Schumer brokered an agreement with Congressional leaders and the Department of Housing and Urban Development that will ensure the New York City Housing Authority (NYCHA) can use the capital money it is expected to receive from the economic stimulus package to cover the high cost of elevator repairs and upgrades at its public housing complexes. Schumer said the money will go a long way to upgrading antiquated elevator equipment at affordable housing complexes across New York City. Overall, New York City could receive as much as $600 million in federal housing money as part of the final package.

Tax Break for Seniors

The final stimulus includes $250 tax credit to 406,375 New York City SSI Recipients. SSI is designed to help aged, blind, and disabled New Yorkers who have little or no income to provide cash to meet basic needs for food, clothing, and shelter.

New Tax Break on Car Purchases

New Yorkers who buy new cars, light trucks, recreational vehicles and motorcycles will now be able to deduct the state sales and excise taxes from the purchase on their federal returns next year.

Rep. Velázquez Hails Passage of Economic Recovery Bill

Measure Will Create Jobs, Bring Relief for New York City Families

Washington, DC – The U.S. House of Representatives today approved the “American Recovery and Reinvestment Act of 2009” to create or save 215,000 jobs in New York State, including 8,400 in the 12^th Congressional District alone. The comprehensive legislation makes investments in urban areas that will strengthen public housing, mass transit, education, and provide other important resources for New York City’s hard-working families. Congresswoman Nydia Velázquez (D-N.Y.) hailed the funding and tax cut package as the best way to get people back to work while investing in the long-term health of the City.

“We need this economic recovery package to stop the cycle of job loss that has crippled New York City and the entire nation. Only if we get people back to work and help them afford their basic needs, will spending start up again and our economy begin to recover,” said Velázquez.

Infrastructure projects and other targeted spending will get New Yorkers back to work and jumpstart the economy. The State is expected to receive $2.7 billion to fund public schools, $1 billion for highway construction projects, $1.3 billion for mass transit, and $403 million to help seniors and families reduce energy bills by weatherizing their homes. In New York City, the public housing authority can expect $390 million to modernize and improve the safety of its buildings. In addition, 95 percent of workers and their families – totaling 7.1 million people in New York State – will be eligible for a tax cut of up to $800. The extra money will show up immediately in workers’ paychecks.

“This bill provides a major investment in New York City – from renovating public housing buildings to making sure our schools are equipped with 21^st Century technology,” said Velázquez. “We are focused on creating a bright future for our children, and putting New Yorkers to work now making the improvements.”

With New York City’s unemployment rate above 7 percent, the recovery package also takes steps to help out-of-work New Yorkers make ends meet as they search for a new job. The legislation expands unemployment benefits, and helps the recently unemployed maintain health care coverage that was offered by their last employer. To feed the hungry, the bill increases food stamp benefits by more than 13 percent.

“Our workers and small business owners are the ones who can lift us out of this downturn. By supporting their hard work and innovative ideas, we will get things moving again and see our communities thrive,” said Velázquez.

As Chairwoman of the House Committee on Small Business, the Congresswoman worked to ensure the bill gives small firms access to affordable credit and new capital. The Small Business Administration will provide guarantees on new loans and refinance past loans to make payments more affordable for business owners. In addition, tax credits will help ease the burden on entrepreneurs and allow them to meet payroll, stock their shelves and expand their businesses.

Queens Small Biz Hurt By Credit Crunch by Joseph Orovic - Queens Tribune

Read original...

Retail stores in our borough are filled with “Sale” signs and car lots have seen more tumbleweeds than buyers. But for the last four months, the credit crisis’ impact has been intangible.

Finally, a numerical measure has been taken and the results are as distressing as you would expect. Congressman Anthony Weiner (D-Kew Gardens) and Congresswoman Nydia Velazquez (D-Brooklyn) released data collected from the United States Small Business Association (SBA). The City’s small businesses suffered a nearly 40 percent drop in guaranteed loans in comparison to last year. Queens took the biggest hit of all five boroughs with a 45 percent decrease. It represents a $48 million drop in funding for entrepreneurs in the borough.

“Access to loans is essential, and in many cases, literally makes the difference between a business that floats and a business that sinks,” Weiner said at a press conference. “These funds need to flow so we can restore confidence in the economy and create jobs.”

In an effort to ease the flow of money, the Federal Reserve and Treasury Department announced a $200 billion dollar program targeting consumer asset backed securities – essentially bundles of debt such as student, car and small business loans guaranteed by SBA. The Fed will lend holders of these securities up to $200 billion and take the debt off companies’ books. It is the Fed and Treasury Department’s first effort in the Federal bailout saga to ease small business woes.

“More needs to be done, but this a move in the right direction,” Velazquez said in a statement reacting to the plan.

But organizations like the Queens Chamber of Commerce remain uncertain about the plans’ prospects. According to the latest Federal Reserve Senior Loan Officer survey, over 75 percent of lenders have raised small business loan standards and over 90 percent have increased the cost.

“If this unloading of securities can free up the credit market, then it’ll certainly help small businesses get funding,” Vice President of the Chamber Jack Friedman said.

Until then, the Chamber and Queens Economic Development Corporation (QEDC) are helping businesses find money from a myriad of sources.

Among them, both organizations are helping entrepreneurs prepare when applying for a loan. Making their business plan and model as attractive as possible may be what makes or breaks a loan deal for many.

“Loan officers are human beings and they go by their gut as much as anything else,” Friedman said.

Both organizations also encourage the use of microlending to give entrepreneurs a booster shot in these difficult times. The loans of up to $50,000 can be a short-term fix until the economic waters grow calmer.

Finally, the QEDC has launched its third annual Start-Up Business Plan Competition. The top-nine winners will share a pie of $29,000. First place gets $15,000, and on down.

“It may not seem like a lot of money, but for a small business getting started it can be a big chunk,” the QEDC’s Entrepreneurial Assistance Program Director Franklin Mora said.

Neither Mora nor Friedman sounded optimistic about the near-future for small businesses in Queens.

No, “Going Out of Business” sales haven’t become omnipresent. But uncertainty is still king.

“We’ll really see the effect of all this in the coming quarter,” Friedman said. “Businesses will fight through the holidays. What happens in January and February, we’ll just have to see.”