News

Development forum set for tomorrow

Event called by mayor will focus small-business lending

By Times Staff
Published: November 18, 2008

Mayor Carolyn Kirk has scheduled an economic development forum for tomorrow morning, with plans to focus on small business finance, partly in response to the recent economic issues.

The event, set for 10 a.m. at the Gloucester House restaurant, will feature a number of participants from small-business based lending institutions,

"I am convinced that small business lenders are 'open for business' in Gloucester," Kirk said in a prepared statement yesterday. "We want to support their work and bring additional resources to help finance small business."

Concerned over national trends, Kirk had directed staff to survey local lenders over the past month. In October, the Senior Loan Officer Opinion Survey on Bank Lending Practices, published by the Federal Reserve Bank, indicated that 75 percent of banks across the nation had tightened their lending standards for small firms since July. With Kirk's instruction, Cleveland Cook of Gloucester Community Development, met with six different banks which do small business lending in the City.

Cook and the mayor said they've found that local banks are continuing to accept applications for loans.

"We found that banks are anxious to do business in Gloucester," Kirk said. "They do have requirements and they look for certain information, but they will lend money."

Local bankers also agreed that they would work with others to address business needs they cannot meet.

"As a result of our discussions with local bankers we planned this economic development forum," Kirk said. "The forum will feature presentations from non-traditional, or GAP lenders. These agency lenders will complement our local banks to reach out to business that might otherwise not get a loan.

"We expect Gloucester small business lenders, accountants and other to join us to listen to their presentations and for a discussion of small business issues," Kirk said.

Lenders from Cape Ann Savings Bank, Rockport National Bank, Sovereign Bank, Banknorth, Ipswich National Bank and BankGloucester are expected to attend, Kirk said.

The forum will feature speakers from non-traditional lending organizations, including Ken Goode, vice president/Business Development with Mass. Development; M. Paula Zaiken, vice president of The Property and Casualty Initiative; Bob Germino, loan officer with the Massachusetts Economic Stabilization Trust; Josephina Silva, loan officer with the Massachusetts Community Development Finance Corp., and David Marsh of the Group Insurance Commission.