ECONOMIC AWARD SBA fetes city for creation of jobs

Initiative projects have totaled $10.2 million in investment and 680 jobs.
By ROGER G. SMITH
and DAVID SKOLNICK
VINDICATOR STAFF WRITERS
YOUNGSTOWN -- The U.S. Small Business Administration honored the city today for its recent success in creating jobs.
Patrick Rea, administrator for SBA's region five, gave the city the SBA Region V Leadership Award for Economic Development.
The award is for the Youngstown-U.S. Small Business Administration Revitalization Initiative. The program, started in 2001, combines city financial programs, low-interest private bank loans and SBA loan guarantees.
The city typically extends loans that don't have to be paid back if a business remains operating for several years. Businesses have to put up 10 percent of their own money and must qualify for an SBA-guaranteed bank loan.
The city loan and the business's equity make up about 25 percent of a project. A local bank lends the remaining 75 percent, guaranteed by the SBA.
Rea praised city officials, particularly Mayor George M. McKelvey, for supporting the program.
City officials "have made sure the city looks forward to the 21st century like it did with the 18th, 19th and 20th centuries -- with hope," Rea said.
"The first thing the business community asks for is solid local government. You have it here in Youngstown."
Job creation
Projects that have come through the program have totaled $10.2 million in investment and have spawned about 680 jobs, the SBA said.
Rea credited the city for its vision in dedicating some of its scare resources to the small-business initiative.
McKelvey said the city's ability to get deals done separates it from others.
"Youngstown is a success story," he said.
Rea gave the award at Brilex Industries on Crescent Street, which received assistance through the program. The heavy manufacturing company went from six employees in 1996 to 60 today.
Brilex recently moved ahead with a nearly $2 million expansion that will create 10 jobs. The company, which makes equipment for steel and other metals industries, is building an addition and investing in new equipment. The company received a $1.12 million loan through the program today to help with the expansion.