Bernadette O'Leary (212) 312-3523(EDC)
GIULIANI ADMINISTRATION PROVIDES EMERGENCY, LOW-INTEREST LOAN TO RELOCATE BROOKLYN MERCHANT AFTER BUILDING COLLAPSE
Mayor Rudolph W. Giuliani announced today that Brooklyn House of Locks and Hardware, Inc., a retail hardware and locksmith service shop in the Flatlands area of Brooklyn, has received an emergency, low-interest $50,000 loan from the New York City Economic Development Corporation (EDC) to help the company reopen its business. The store was previously located in the five-story residential and commercial building, located on the corner of Flatbush and Flatlands Avenues, that collapsed earlier this month.
"This business is important to the economic vitality of this neighborhood," said Mayor Giuliani. "Small businesses overall are a major economic engine throughout the City. It is difficult to rebuild a business after a tragedy like this. This emergency loan program will help Brooklyn House of Locks get back on its feet, and I am extremely pleased that, in a relatively short time, we were able to help the store reopen its doors at a new location."
In an immediate response to the loss suffered by small business owners in the building, Mayor Giuliani announced the availability of an emergency loan program funded by EDC to help rebuild the companies. Brooklyn House of Locks is the first business since the collapse to take advantage of the loan, which is offered at two percent interest rate for five years.
Eight days after the collapse, Alan Butrico, sole owner of Brooklyn House of Locks, borrowed money from his father-in-law for a down payment on a new site, located two blocks away from his former address. The loan from the City will help pay for equipment purchases, moving costs and inventory purchases. The move is not expected to adversely affect the company's sales, since it will remain in the same neighborhood.
"Mayor Giuliani created this loan program to help small businesses like the Brooklyn House of Locks persevere after major misfortunes," said EDC President Charles Millard. "His immediate reaction to the needs of this small business is indicative of his commitment to help all businesses grow and succeed in New York City. This kind of support is representative of the Mayor's pro-business attitude, which has led to the creation of more than 150,000 private sector jobs in New York City since 1994."
Brooklyn House of Locks opened in 1986. Mr. Butrico, a native of Brooklyn, has over 22 years of experience in the locksmith profession and more than 10 years of experience in the hardware business. Prior to the building collapse, Brooklyn House of Locks offered lock installation, repair and 24-hour emergency lock services, as well as a full hardware line. The new store will continue to provide its customers with the same goods and services.
The EDC emergency loan is unique because the organization typically does not lend directly to companies. EDC promotes economic development in New York City through such initiatives as negotiating land sales, developing the City's unused lands, and retaining and attracting businesses within the five boroughs. The New York City Industrial Development Agency (IDA), which is managed by EDC, provides conduit financing by issuing bonds on behalf of New York City companies.
EDC is the City's primary vehicle for economic development services. Using its real estate and financial resources, it helps develop businesses and create jobs throughout the five boroughs.
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