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Loans To NYC Small Businesses Up 45 Percent

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 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."

(TM and Copyright 2010 CBS Radio Inc. and its relevant subsidiaries. CBS RADIO and EYE Logo TM and Copyright 2010 CBS Broadcasting Inc. Used under license. All Rights Reserved. This material may not be published, broadcast, rewritten, or redistributed. The Associated Press contributed to this report.)

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