Homebuyers, business owners advised of funding help
BROWNSVILLE – National City Bank and the Brownsville Blueprint Communities Committee offered a community outreach night on Tuesday in an effort to inform the public about options available for first-time homebuyers and business owners. Barbara Carroll, vice president and branch manager of National City’s Brownsville and Old Pike offices and a member of the Brownsville Blueprint Communities Committee, said that people are usually not aware of all the opportunities available to get money to reach their goals.
Tracy Zivkovich, committee chair and a newly elected borough councilwoman, said that the Federal Home Loan Bank and 16 funding program partners started the initiative they were speaking about in 2005.
“The idea is to foster leadership collaboration and get all different community organizations involved, so that we can have revitalization and business expansion,” said Zivkovich. “Tonight, we want to let people know that there may be ways to get funding to help with any ideas you may have. We want to help the community move forward.”
Dawn Bretzel, a National City loan officer, said that first-time homebuyers can qualify for a $5,000 grant, something that many prospective buyers do not know.
“First-time homebuyers can receive up to $5,000 in grant money to help cover closing costs and depending on how much you are spending, down payments,” said Bretzel.
She said that in order to receive the grant, prospective buyers must take a four-hour counseling class. Also, to be eligible, the buyer cannot earn more than $68,000 annual income for a two-person family, or more than $80,000 for a family of four.
The main focal point of the discussion was business, since Carroll pointed out that a major challenge that the Brownsville community is facing is a decline in business.
“We want to encourage people to start new businesses or expand their businesses,” said Carroll, adding that they have partnerships with several local universities that enable them to assist aspiring business owners in developing a business plan at no cost.
“The Federal Home Loan Bank is geared towards small businesses,” said Carroll.
George Fausald, vice president and CRA officer for National City, explained more about options that FHL Bank makes available and how they work.
“Banks invest money in the Federal Home Loan Bank, and they do things to make money out of that so that they can start different programs,” said Fausald.
He explained that for the FHL Bank to assist a business, it must have fewer than 50 employees, and it must make less than $10,000,000 per year.
“A lot of folks are eligible,” said Fausald.
He explained that FHL Bank has a Banking on Business program that will provide money for start-up businesses that banks are unable to loan.
“If someone need $100,000 to start a business, and they have $5,000 to put in, National City might say they can only lend $80,000,” said Fauslad. “You still need $15,000. That’s where the Federal Home Loan Bank comes in. They can provide the additional equity.”
Fausald noted that if a new business should fail, the FHL Bank would consider the loan they made a grant, and the business owner would not have to pay it back.
Zivkovich said there are also a lot of other resources available, such as non-profit organizations and government grants that help with start-up businesses.
Former Mayor Norma Ryan, who is involved with Project Bright Tomorrow, an initiative made available to Brownsville through Gov. Ed Rendell’s office, said that they have already identified ways to improve the borough.
“The governor’s office sent a team in to see what we needed,” said Ryan. “Their idea was that we needed a code enforcement officer.”
Ryan pointed out the code enforcement office is now open on Market Street next to Eckerd Drug.
“We have designated an area between the Flatiron Building and the borough building where the goal is to have every building revitalized and usable again,” said Ryan. “This is a matter of working together and letting people know the opportunities that are out there for people who want to do something.”
Ryan said that the area needs new businesses, and Project Bright Tomorrow is putting together a revolving fund that will help new businesses expand.
For more information, Bright Tomorrow can be reached at 724-785-5072.