MAYOR MASIELLO, CITING ADMINISTRATION PREROGATIVE, SUBMITS YEAR 26 COMMUNITY DEVELOPMENT BLOCK GRANT TO HUD/CREATES NEW SMALL BUSINESS DEVELOPMENT PROGRAM
June 19, 2000
Contact: Peter K. Cutler (716) 851-4841

BUFFALO (6/19/00) - Mayor Anthony M. Masiello, citing a reluctance to wait any longer for Common Council action on the annual U.S. Housing and Urban Development Community Development Block Grant (CDBG), exercised administration prerogative and submitted the Year 26 CDBG to HUD after a public hearing next Monday, June 26th and the required 30-day comment period.

"Following consultation with the city's Corporation Counsel, the U.S. League of Cities, the National Community Development Association and the U.S. Conference of Mayors, I am satisfied that it is the prerogative of the administration to submit the CDBG without Common Council action," stated Mayor Masiello. "I am taking this action with the best interests of the entire city in mind and I am confident that the $21.1 million included in the CDBG will help stimulate greater citywide job creation, while preserving vital monies for housing rehabilitation, human service agencies and existing economic development initiatives."

The $21.1 million CDBG, combined with $6.7 million in housing funds, $1.3 million in program income and an infusion of $350,000 in Federal Enterprise Community monies brings the entire spending plan to approximately $29.1 million.

"This is not an act of confrontation; it is imperative that the citywide agencies that depend annually on these monies receive their funding as soon as possible," said the Mayor. "As always, the CDBG reflects the concerns of the Council members and the spending plan, working in tandem with the city's operating and capital budgets, addresses broad concerns and needs throughout the entire city, particularly in at-risk neighborhoods. It is a good and responsible plan."

This year's CDBG earmarks economic development monies that will be coupled with remaining Federal Enterprise Community (FEC) funds to create a new, two-year

$1 million Small Business Development Program (SBDP). This new initiative will be combined with $700,000 allocated in the Year 26 CDBG Traditional Small Business Lending Program.

"Working with Council President Pitts, the Buffalo Economic Renaissance Corporation (BERC) has established a program that will help address the needs of local small businesses located within the Federal Enterprise Community," noted Mayor Masiello. "The program will afford small businesses technical assistance as well as capital. We have developed new loan products and we have streamlined the loan application process, which will help expedite assistance to our small business owners."

Features of the Small Business Development Program include: the creation of a coordinated small business team - Success with Intelligent Management (SWIM) - to deliver technical assistance jointly and effectively; the development of a Buffalo Neighborhood Small Business Assistance Center that will be located in the Apollo Theatre; a Small Business Advisory Panel and a Small Business Mentoring Program. Additional aspects of the Program are: the newly created Live Zones Program geared toward bolstering neighborhood business districts; micro-lending opportunities; a fast-track loan application process and an emphasis on a business-to-business (B2B) program to help connect small businesses with each other and to encourage the use of local firms.

The BERC currently operates an Entrepreneurial Assistance Program and a Minority/Women Business Enterprise Bond Readiness Program, which will be folded into the SBDP and administered by the BERC.

"Following our advocacy for the expansion of the state Economic Development Zone, I instructed BERC to work with Common Council President Pitts to create a program that could better assist the small businesses that either already exist in the FEC or entrepreneurs seeking to establish new enterprises in the FEC," said Mayor Masiello. "Coupled with the recent news of our lowest unemployment level (4.4%) in 26 years and record local employment, as confirmed by the state Labor Department, new, innovative initiatives like the Small Business Development Program will only strengthen further our local economy, particularly within the inner city."