Worcester Business Journal

www.wbjournal.com September 12, 2016 • Worcester Business Journal 21 Keep up the small business loans E D I T O R I A L The Worcester Business Journal welcomes letters to the editor and commentary submissions. Please send submissions to Brad Kane, editor, at bkane@wbjournal.com. I grew up in Central Massachusetts and have been fortunate enough to have a job that allows me to work within my community and help play a role in its revitalization. Having lived on the outskirts of Worcester for most of my life, I have been witness to some of the city's crowning moments. The Worcester of 30 years ago is a far cry from the Worcester of today. From the successes at Gateway Park, the WBDC's redevelopment of the former Telegram & Gazette building, the opening of the Hanover Theatre and the investment in the Canal District to the rise of CitySquare and Mercantile Center, we have seen the power of public and private initiatives and well- thought-out, targeted development. With this knowledge and power, it is our responsibility as good community stewards to build upon their successes. Worcester is a case study in resiliency and ingenuity, embracing each new challenge as an opportunity. Today, one of our community's greatest challenges can be seen in capitalizing on the momentum of development and investment to realize the revitalization of our downtown. The City of Worcester recently filed its urban revitalization plan with the Department of Housing and Community Development (DHCD), beginning its review process with the commonwealth and bringing us closer to having a final plan that will assist in conquering this aforementioned challenge. The plan submitted to DHCD is a far-reaching proposal that is comprised of a patchwork of our older urban downtown areas and former manufacturing sites of our industrial history. With such a comprehensive plan, it is certain there will be near-term wins and long-term wins, but we must continue to be strategic in our approach – not a one-time flash in the pan but a continued economic development approach to better our community. Urban revitalization has seemingly been a menacing term for property owners and business owners alike, with visions of wrecking balls and bureaucratic tape stifling the spirit of the community. Just as Worcester has made great leaps, urban revitalization should no longer be viewed as the specter that threatens the community. Urban revitalization can be a fundamental development tool, but it requires a great deal of community input and forward- thinking leaders who are willing to accept the next challenge as an opportunity to encourage redevelopment of blighted properties that have fallen victim to disinvestment. The true implementation of this plan requires property owners and business owners to open their doors, be willing to ask for help and be willing to listen to opportunity. It requires vision and patience, but first and foremost – it requires community. Urban revitalization should be defined by the farmer's markets on the weekend, cool new art that pops up where you least expect it, waiting lines for a table at the hot new restaurant, recent Worcester college grads staying and living downtown rather than in Boston, and boundless opportunities for enjoying a night out with friends. As a community, if we truly want to realize the success of our downtown's future, we must commit to the tough projects, have the tough conversations and accept these challenges as opportunities for the greater good of the community. n Julie Holstrom is a senior project manager with the Worcester Business Development Corp. Urban revitalization needs community cooperation BY JULIE HOLSTROM Special to the Worcester Business Journal V I E W P O I N T Julie Holstrom This is significant for two reasons: that amount is already 33 percent above the total loaned in all of 2015, and it means Central Massachusetts is playing a significant role in the rise in SBA loans throughout the state, which surpassed pre-recession levels for the first time. In her cover story on this issue, Staff Writer Laura Finaldi dives into why banks are doing so much more SBA lending in the region, and the reason is fairly straightforward: there is a pent up demand from customers, and there is money to be made through SBA lending programs. Local banking institutions have found that by offering SBA loans as part of their suite of products for companies – instead of a siloed-off product where only one or two loan officers have training – they are able to use the SBA guarantees to financially support more small business loans. This not only benefits the bank, but the SBA loan structure can allow small companies to have more cash on hand to make the necessary upgrades and investment in personnel and products that can make firms successful for years. This spike in lending is due in no small part to the SBA relaxing fees – especially for loans of $150,000 or less – and putting an emphasis on underserved populations, like businesses owned by minorities, veterans and women. Banks in the region have jumped at these opportunities, and it is paying off with more and more lending to companies who meet those profiles. Since 2014, loan amounts to minority- owned businesses have increased 80 percent. Clearly the SBA was on the right path in making these structural changes, and banks are following through by expanding their SBA portfolios and services. For small businesses – which employ about half of the state's 1.4 million workforce – bank loans are often not easy to qualify for, and having the SBA products available to them is an important cog in keeping the Central Massachusetts economy churning. In Finaldi's article, the regional director of the Massachusetts Small Business Development Center Network at Clark University – John Rainey – said it is typically poor economic times that breed more small business creation. Strong economic times tend to have more existing businesses looking to expand or be acquired by potential suitors. At this stage of a long period of sluggish but year-over-year growth, it's nice to see a mix of funding for both new business creation and expansion. So, even though this new level of lending might be the result of pent-up demand from the Great Recession when businesses were reluctant to invest in new ideas, the message the SBA and the banks are sending is clear. There is confidence in the region, the economy and those investing it its growth. That is a surefire way of extending the economic growth we've seen the last seven years. The more Central Massachusetts firms who take the plunge and finance new investment and growth, the stronger our economy will be. n I t is difficult to overstate the impact Gail Carberry has had on both Quinsigamond Community College and the Central Massachusetts business community. When her 10-year tenure as QCC president ends with her retirement at the end of this academic year, it will also end the second-longest reign of any current Central Massachusetts college president after Dan Asquino steps down in January after a record 30-year run as president of Mount Wachusett Community College. Carberry will leave behind a community college that has nearly doubled its number of graduates and ingrained itself into the business community through a deep commitment to workforce development with multiple community partnerships, including many area colleges. Carberry, who was a 2010 Outstanding Woman in Business honoree from Worcester Business Journal, has seen the number of graduates from QCC grow from 700 in her first graduating class to more than 1,400 this year. She oversaw significant upgrades to the West Boylston Street Campus, the opening of QCC's downtown Worcester facilities and the successful satellite campus in Southbridge. She also spearheaded initiatives like the H.E.A.R.T. initiative with Anna Maria College in Paxton to give emergency personnel and social workers an affordable path to an associate's and a bachelor's degree. Carberry's retirement comes at a time when more emphasis is being placed on affordable higher education and the need to match the skills of graduates with the needs of the workforce. In 10 years, Carberry helped QCC and the region take significant strides toward those efforts and leaves an institution that is significantly better than when she arrived. n T hrough the first eight-plus months of 2016, the U.S. Small Business Administration has made $56.1 million in loans to Central Massachusetts businesses. Happy trails, Gail Carberry There is a pent up demand from customers, and there is money to be made through SBA lending programs.

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