SBA Chief, Pascrell Tour Passaic Businesses; Deliver Message that Federal Aid is Available
Passaic - U.S. Rep. Bill Pascrell, Jr. (D-N.J-8), Ranking Member of the House Small Business Subcommittee on Tax, Finance, and Exports, today was joined on a tour of businesses in the City of Passaic by Hector Barreto, head of the Small Business Administration in Washington D.C.
In Barreto's first visit to New Jersey since being appointed by President Bush, he and Pascrell visited two businesses that been aided by SBA programs and toured several others along Monroe Street to convey how the vast array of SBA programs can help those businesses grow and create jobs.
"Small businesses are the backbone of our economy, yet too many entrepreneurs simply do not know the ways the federal government can help them succeed," Pascrell said. "Administrator Barreto and I took the information right to folks today, seeing first-hand the local economy at work and underscoring that we must focus on strengthening and growing this crucial sector one business at a time."
"We wanted to hear directly from small business owners the challenges they face, and discuss with them the programs available to help meet their needs," Pascrell said.
Pascrell and Administrator Barreto first stopped at businesses that have benefitted directly from SBA assistance. Puebla Foods, a manufacturer of corn and flour tortillas, has received a $446,000 7(a) loan and currently employs 35 workers. Their products are distributed throughout the Northeast. Next the tour stopped at Kandall Fabricating & Supply, which employs 75 workers and manufactures pipes that are used in sprinkler systems. They recently received a 504 loan totaling $617,000, which they used to purchase a 50,000 square foot facility.
"Small businesses make up the backbone of our economy here in Passaic, and we are working hard to help them grow and prosper," said Mayor Sammy Rivera. "I am very pleased that our Congressman and Administrator Barreto came to Passaic to discuss how a strong partnership with the federal government can help make that happen."
Following the stops at Puebla Foods and Kandall Fabricating & Supply, Pascrell and Barreto met with several businesses on Monroe Street in Passaic and then held a Resource Partners Meeting in the City Council Chambers. The meeting allowed business owners from throughout the area to speak directly to the Administrator and Pascrell about their priorities and ways Washington can further assist small businesses.
Programs discussed along the tour included the following:
The 7(a) Loan Program. This is SBA's primary business loan program. It is the agency's largest and most important in terms of the number of loans and the program level of supported. The 7(a) program provides loan guarantees to eligible small businesses that have been unsuccessful in obtaining private financing on reasonable terms. The program operates through private-sector lenders that provide loans that are, in turn, guaranteed by the SBA. The proceeds may be used for virtually any business purpose.
The 504 Loan Program. This provides permanent, fixed rate financing for businesses needing to acquire industrial or commercial buildings, or heavy equipment and machinery. The program is delivered by local Certified Development Companies (CDCs) working in partnership with private lenders and the SBA. The CDC agrees to provide financing to a small business borrower as part of a larger financing package.
By unanimous vote, the U.S. Senate confirmed Hector V. Barreto President Bush's choice as the 21st Administrator of the U.S. Small Business Administration, on July 25, 2001. As SBA Administrator, Mr. Barreto directs the delivery of financial and business development programs to America's entrepreneurs. With a portfolio of direct and guaranteed business loans and disaster loans worth more than $45 billion, SBA is the nation's largest single financial backer of small business.