October 2001

U.S. Small Business Administration Projects Triple in Cortland County

Cortland Now Leads the Region in SBA Activity

US Small Business Administration business expansion projects in Cortland County have tripled in the past year, from $2,029,000 to $6,349,950. This growth now makes Cortland the leader for small business activity -- as measured by both volume and pace of growth -- in the ten-county Southern Tier SBA region based in Elmira, NY.

According to a summary released by the Elmira office, SBA approvals this year by county were:

* The SBA fiscal year runs from October 1 to September 30.

The Cortland County BDC/IDA teamed up with the SBA this past year to create monthly "Business Assistance Days," offering free technical assistance to small businesses seeking financing for business expansions. Often, BDC/IDA Revolving Loans were paired with SBA loan guarantees and commitments from local lending institutions to finance projects.

"This clearly indicates that business in Cortland County is on an upswing," said Leo Kawczenski, former SBA Loan Specialist who worked with the Cortland County BDC/IDA on small business expansion projects. "It's a credit to the partnership model that has been created in Cortland between the SBA, the BDC/IDA and lending institutions." Financial institutions who participated this year in Cortland County SBA projects included Alliance Bank, First Niagara Bank, BSB Bank and Trust, Tompkins County Trust, Key Bank NA, Fleet National Bank, HSBC Bank, Visions Federal Credit Union, the New York Business Development Corporation, Empire State Certified Development Corporation and the Grow America Fund.

"This has been a great partnership specifically targeted at helping small businesses grow," said Linda Hartsock, BDC executive director. "Working with the SBA, we've created a one-stop resource for Cortland County businesses to have access to a network of financial and planning experts. We had a goal to double SBA small business activity here this year, and we've actually tripled it."

"These fantastic growth numbers attest to the strength of the small business sector in Cortland County," said Paul Slowey, BDC/IDA Chairman. "There are nearly 1,000 small businesses here which are the foundation of our economy and account for more than 50% of Cortland's total private sector employment. These numbers demonstrate that they are continuing to grow and add employees."

The SBA's primary business loan program, the 7(a) Loan Guaranty, helps secure loans to businesses who cannot obtain financing on reasonable terms by reducing risk to lenders who approve and service the loans in return for SBA guarantees. There are a number of loan programs under the 7(a) program that address specific needs. For small business loans of $150,000 or less, a low documentation loan features a one-page SBA application, cutting the paperwork burden for both small businesses and lending institutions. If approved, the SBA guarantees up to 85% of the loan with a quick turnaround to the lender.

Other specialized SBA programs include loans for women and minority business owners, loans for short-term working capital, export working capital financing, international trade loans, and micro loans under $35,000 for small-scale financing purposes such as inventory and supplies.

The SBA also funds the Small Business Development Center which operates in partnership with SUNY Binghamton. The SBDC can assist entrepreneurs who want to start a business or small companies with growth needs to develop a business plan and market development strategy, as well as do preliminary work prior to preparing SBA loan applications. The SBDC also meets monthly with businesses at the BDC/IDA.

Appointments to speak with either a SBDC counselor or SBA loan specialist can be made by calling the Cortland County Business Development Corporation at (607) 756-5005. Regularly scheduled "Business Assistance Days" with the SBA are the first Thursday of each month at the BDC/IDA office, 37 Church Street, Cortland.