What a difference a government loan guarantee can make.
The Orleans County village of Holley is getting a new grocery store, thanks to a $171,167 state grant and a $775,000 bank loan, backed by a 75 percent guarantee from the U.S. Small Business Administration.
That means $581,250 of the loan is effectively “insured” by the federal government, which made it easier for the bank to extend the loan.
The new store in Holley illustrates how the SBA’s loan guarantee programs are designed to help small businesses start or grow, while also benefiting the community at large.
Without the nearly $1 million financial package — and particularly the loan guarantee — the Save-A-Lot grocery chain might not have opened a store in the former Jubilee Foods site at 3 Geddes St.
“The people of Holley should have access to a quality grocery store that provides local farm-fresh products at affordable prices,” said Rep. Kathleen
A. Hochul, D-Amherst, who says she
helped Save-A-Lot pursue federal funding after Holley’s mayor raised the issue to her.