Monthly Reminders

May 2012

* Shut off any electric heat tapes, line elimination devices or other equipment designed to prevent freezing during the winter.....save on electricity!

*Run an ad for detailing

* Yard cleanup; leaf and debris pickup, rake and fertilize any grass areas, mulch and prepare flower beds for planting

* Order flowers they are a cost effective way to dress up any location. Tired of planting every year? Plant annuals they come back on their own year after year.

Do you have a reminder you would like us to post? Send it to us!

Tip: Have you started your saftey binder?.... check out the blog CarWash Safety 101 for more details

News | NYSCWA Legislative Update

NYSCWA Legislative Update - Summer 2011

Budget Discipline, Economic Development

Could Improve Current Business Environment

By William Y. Crowell, III

IThe recent on-time adoption of the New York State budget deservedly received extensive media coverage. The adopted 2011-2012 budget closed a $10 billion deficit largely through cuts in education, health care and in state government operations. Most notably, the budget did not include the imposition of new taxes, fees or the use of borrowing to close the deficit.

The budget also authorized the Executive Reorganization Act of 2011 which is directed at reducing the number of agencies, authorities and commissions. This represents an attempt at bringing the ever-expanding size of government under control. The Spending and Government Efficiency Commission (SAGE) was recently instituted by the Governor to undertake this mission.

In terms of economic development, the centerpiece of the Governor’s budget is the creation of 10 regional economic development councils. This new strategy of regionalization of economic development is under the chairmanship of Lieutenant Governor Robert Duffy. A competitive process for the funding of economic projects is being established. A strong economic development program coupled with budget and tax discipline are critical components to make New York business-friendly. Small businesses in New York would be beneficiaries of a turn around. An overall improvement in New York State’s economy inures to the benefit of all its small businesses. Carwash operators are no exception in terms of the positive benefits of increased employment and investment in New York State.

Of particular interest to carwash operators as small businesses is the increase in the limit on the Excelsior Linked Deposit Program from $1 million to $2 million. The budget also permits linked deposit borrowers to extend the four-year term of their loans an additional four years. This program provides reduced rate financing so small businesses can undertake projects to modernize their equipment, to expand facilities for productivity, to introduce new technologies or to facilitate ownership transition, and to promote job retention. This program would save two to three percentage points on the prevailing interest rate for linked deposit loans with a maximum loan amount of $500,000 for four years.

Linked deposit loans have various eligibility criteria applied to their availability. Businesses can make application for linked deposit loans at banks or through the New York Business Development Corporation.

The New York Business Development Corporation (NYBDC) partners with banks to provide alternative funding for small businesses, such as carwashes, which might have difficulty qualifying for conventional financing. The NYBDC is a leading lender participating in the federal Small Business Association (SBA) loan programs. The SBA 504 program can provide fixed rate, low down-payment financing for building acquisitions, construction, and equipment purchases. A review of recent loans in which NYBDC participated includes several to carwash operators. The NYBDC focus on small business loans makes it a potential resource for carwash operators seeking funding for any number of reasons.

Budget discipline together with a new economic development strategy will hopefully improve New York’s current business environment. Access to capital for investment in small business is a critical component to achieving success.