Bank officials meet to build disability loan fund; Commerce Commissioner urges private-public partnership to create jobs and careers.

WEST PATERSON, N.J.--(BUSINESS WIRE)--Dec. 19, 1994--Officers of more than 12 New Jersey banks were encouraged today by state Commerce Commissioner Gualberto Medina to support and participate in the state's Disability & Non-Profit Micro Loan Fund for businesses run by those with disabilities or employing the disabled.

The gathering was hosted by The Bank of New York NA, National Community Division, at its West Paterson headquarters. A founding member of the Micro Loan Fund (MLF) review board, the Bank of New York NA was the state's first financial institution to demonstrate financial support for the fund.

"This meeting symbolizes social economics at its best," Medina told the gathering. "New Jersey is a proponent of utilizing free market strategies to achieve social goals. The Micro Loan Fund does just that by unblocking the path to success for people with disabilities.

"People with disabilities make up 10% of New Jersey's population, but less than 5% of our entrepreneurs," he added, stressing the need for a broader public-private partnership to help the Micro Loan Fund "make a difference" in the state.

The Commissioner recognized Bank of New York NA Chairman and President F. James Hutchinson for taking a leadership role within the financial community in supporting the MLF. The Bank has made a below-prime loan of $100,000 to the MLF, which the fund, in turn, lends out to qualified applicants. In addition, the Bank has made a grant to the loan fund.

"The MLF is an ideal opportunity for business and the public sector to work together to meet community needs," Hutchinson said. "In this case, the need is to create jobs from the private sector, which will lead to new revenues for the state, enhanced economic growth and reduced dependence on government programs.

"According to the MLF, there are approximately 360,000 people with a disability in the 18-64 age range, yet 185,000 of this group are not in the labor force," he pointed out. "A realistic goal of putting just 15% of those people to work would represent significant savings to both state and federal governments, new revenues for the state and major earnings and cash entering the economy."

Commissioner Medina also noted that the MLF's ability to support the diverse, disabled segment of the population had recently been enhanced by a $100,000 grant from The Dole Foundation, which in turn was matched by a $200,000 grant from NJEDA. The Dole Foundation, represented at the meeting by its program officer, Randy Davis, was announced by Senator Robert Dole in 1983 and has made more than $5.5 million in grants from private sources to qualify non- profit organizations operating innovative job training and career advancement programs for disabled citizens.

Fund began as interagency initiative

Begun in 1992 as an interagency initiative between the New Jersey Developmental Disabilities Council, the New Jersey Economic Development Authority (NJEDA) and the New Jersey Department of Commerce, the Micro Loan Fund became a non-profit 501 (C) (3) corporation two years ago. Located and serviced at the NJEDA in Trenton, the MLF began operations with a $450,000 grant from the Disabilities Council which is in, but not of, the New Jersey Department of Human Services.

According to its Acting Director, Renee Franklin, the MLF is the only business development organization in the United States which specifically targets entrepreneurship and employment for persons with disabilities and non-profit organizations. It employs a commercially accepted financing process which incorporates traditional lending and economic development organizations into that process.

The fund, which is able to creatively leverage capital assets to obtain participation by other lending sources, assists individuals and businesses throughout the application process. It considers applicants with little or no collateral or credit history.

Franklin also introduced two MLF loan recipients who were in attendance: Peter Cantanese, sole proprietor of Don Pietro Gourmet Foods Inc., and William Sterling, sole proprietor of D&S Recycling Inc.

The Bank of New York NA, National Community Division, has 105 branches throughout New Jersey with assets of $4.2 billion as of Sept. 30, 1994. It is a subsidiary of The Bank of New York Company Inc., with $50 billion in assets as of Sept. 30, 1994.

CONTACT: The Bank of New York, West Paterson

Peter Birnbaum, 201/357-7720