NEW YORK (1010 WINS/AP) — Government-guaranteed loans to small businesses in New York City are up 45 percent over last year.

U.S. Rep. Anthony Weiner announced Sunday that more than $262 million was distributed in fiscal 2010.

“It’s really small business that are the engine of New York’s economy…so the fact that we’ve had such a big increase in lending to small businesses in the boroughs does speak well for the future of our economy,” Weiner told 1010 WINS.

The Democrat said the loans, offered by private banks, increased after passage of new laws designed to increase credit for business owners battling the recession.

Weiner also said there was close to a 50 percent increase in the amount of the loans that were offered.

The figures come from the federal Small Business Administration.

Among the five New York City boroughs, the Bronx saw the biggest uptick in the amount of money loaned — an increase of 62 percent.

If a business defaults on a loan, it’s federally guaranteed to 90 percent.

The changes, Weiner said, would allow small businesses to get back on track in the struggling economy.

“If they see increased demand, they’ll be able to hire more people.”

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  1. Gigi Berman AHaroni says:

    It’s important to note that all SBA loans require a personal guarantee by the borrower if in default. Personal guarantees are often a misunderstood and dirty secret of loans. Business owners and their spouses can easily underestimate the financial devastation that a personal guarantee can cause. I wrote a personal and cautionary tale on this subject for Time Magazine in March 2010, and will be speaking about it for a Hofstra University finance class. Please contact me for future speaking engagements.

    Gigi Berman Aharoni

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