Torres’ top small business priority: access to capital

Julian Roberts Glamela

Presumably to win over his prospective voters at New York’s repainted 15 before Election Day on November 8^th Rep. Richie Torres said one of his top priorities is providing small businesses with access to capital. The Democratic congressman was speaking at a virtual forum hosted by He Biz2Credit, a New York-based small business lending firm, on Thursday, Oct. 13. Torres appeared as a guest alongside Long Island Republican Rep. Andrew Galbarino.

“One of my top priorities is to make sure that Congress does everything it can to help small businesses recover.[es], it’s the beating heart of the American economy,” Torres said. “We need to give small businesses access to capital. That will be my priority going forward.”

The forum was moderated by Rohit Arora, CEO of Biz2Credit. Torres and Galbarino made short opening remarks before answering selected questions from the audience. (If you register on the forum, norwood news Questions sent about the congressman’s plans for economic development in Norwood were not asked during the event.)

Torres, a member of Congress’ Financial Services Committee, said small businesses in the services and retail industries have been struggling since the pandemic. “I live in New York City, where the entrepreneurial spirit is alive and well. actual Business is access to capital,” he said. “That’s where we need to do more work.”

Torres said there is a shortage of lenders for small businesses. “We have a system where big banks have incentives to lend big to big companies, and small businesses tend to be left behind,” he said. The Bronx lawmaker also said the federal government needs to do a better job of communicating with local communities about existing aid opportunities.

“Most of these programs are poorly marketed and exist as abstractions so people can’t feel them in real life.” I feel that I have to do the work of

Lawmakers also expressed concern over the “aggressive” rate hikes by the Federal Reserve to combat inflation. If inflation rises too high, one of the main policy tools the Federal Reserve has adopted to slow things down is to raise interest rates, according to a Sept. 8 Vox report. This makes borrowing more expensive, cooling demand. However, this could lead to increased unemployment.

Meanwhile, as The Guardian reported on Oct. 16, experts say that raising interest rates “doesn’t work” (in terms of containing inflation), and the real culprit is corporate pricing. , energy costs and supply chain issues.

Tony Gazzari, owner of Anthony’s Famous Gourmet Deli on East Gun Hill Road in Norwood, said: norwood news On the phone that raised the price of the supply chain Have In fact, he’s been forced to raise prices, which is hurting sales. “Everything is expensive and nobody buys anything,” said the deli owner, adding that the federal government should do what it can to bring prices down.

Torres fears such “aggressive” rate hikes will hurt workers, make loans more difficult for unestablished businesses, and do little to keep prices down. said.

Torres said the Fed’s five rate hikes this year would have a “minimal” impact on inflation. “I have expressed my concern to the chairman of the Federal Reserve that ‘if we are too aggressive in raising rates, we risk the worst of inflation, high unemployment and stagflation.’ I have to walk.”

Michael Brady, chairman of the legislative committee of the Bronx Chamber of Commerce and CEO of the Third Avenue Business Improvement District (BID), said higher interest rates would make it more difficult for small businesses to access capital through loans. You seem to agree with what has happened. rate will be higher.

“Inflation is still running, and it is becoming increasingly expensive for small businesses to borrow money,” Brady said. “as [Federal Reserve] They are raising interest rates in an attempt to keep inflation under control, which is basically putting the brakes on consumer spending. But it also limits access to capital for small business owners. So it’s kind of a double-edged sword. ”

Brady also said the federal government should offer more “low-key, character-based” loans to small businesses.

“If interest rates are prohibitive for small businesses to obtain business loans from regular commercial banks, it will be more accessible to small businesses that may or may not have strong credit scores. You have to have an entry point, have the right revenue-to-debt ratio that people are looking at,” he said.

After the two Congressmen left the forum, Arora asked the audience to complete a multiple-choice survey about their top concerns as small business owners. According to the results, 27% said “high inflation and supply chain disruptions”, 35% said “decreased revenues due to the pandemic/economic impact”, and 16% said “rising interest rates and funding”. . cost”, 11% said they have trouble hiring the right employees, and 9% said they are not business owners.

Meanwhile, in other small business-related news, the Bronx Chamber of Commerce recently shared an update on New York’s Empire State Development (ESD) agency’s $250 million COVID-19 capital cost tax credit program. . The new program will provide financial assistance to small businesses in New York State that are bearing the various operating costs resulting from the COVID-19 pandemic. These may include structural changes and building upgrades for health-related supplies and materials.

The program relieves eligible businesses of additional financial burden by providing tax credits that help mitigate the financial impact related to the pandemic. A small business can receive his 50% tax credit on qualifying expenses, up to a tax credit of $25,000, based on qualifying expenses of $50,000.

The Chamber of Commerce also shared news that the NYC Small Business Services Bureau (SBS) has launched a new grant program to support the city’s Small Business Improvement Districts, consisting of two grant options. .

Single-district grants are available to location-based nonprofits currently working to restore, manage, and grow commercial corridors within New York City’s existing Business Improvement District (BID) or Special Assessment District (SAD) boundaries. Fund the organization directly. Annual valuation of $600,000 or less.

On the other hand, city-wide grants Funds nonprofit organizations to develop and deploy technical assistance programs, development resources, and back-office services for the joint benefit of multiple business improvement districts and special assessment districts with an annual valuation of $1,000,000 or less. increase.

Learn more about the Small BID Support Grant Program and application form here. The deadline for both grant programs is Sunday, October 30th. The Bronx Chamber of Commerce is also hosting a grant information session on Thursday, October 30th. Starting at 3:00 pm, we’ll show you how to apply for funding from your neighborhood business. For more information, visit the Bronx Chamber of Commerce Events page.

Effective January 1, 2023, the new congressional districts will include Norwood, Woodlawn, Riverdale, Fieldstone, Spyten-Dyvil, Williamsbridge, Orinville, Eastchester, Allerton, Edenwald, Pelham Gardens, and Van Nest. includes some or all of the North and Central Bronx districts of Morris Park, in addition to the southern Bronx neighborhoods he already represents.

Meanwhile, he is losing several areas of the southeastern Bronx, including Hunts Point, Castle Hill, Clayson Point, Unionport, and parts of West Farms. Torres will face Republican challenger Stylo Sappasquis in the upcoming general election. Early voting will begin on his October 29th.

*Síle Moloney contributed to this article.