SCHUMER ANNOUNCES HART’S LOCAL GROCERS WILL RECEIVE $1.15M SMALL BUSINESS ADMIN. LOAN TO OPEN THE FIRST DOWNTOWN ROCHESTER GROCER IN DECADES –QUICK SBA REVIEW KEEPS HART’S ON SCHEDULE FOR MAY OPENING
Earlier this Week, Schumer Urged the SBA Administrator to Expedite Their Review of the Loan so that Hart’s Local Grocers can Begin Construction on Schedule in May – Hart’s Will Be the First Large Grocery in Downtown Rochester Since the 1990s
Schumer Stated That $1.1M Small Business Admin. Loan Means Hart's Can Close on Deal with Canandaigua National Bank for the Rest of the Financing
Schumer: New Grocer in Downtown Rochester will Add Jobs, Improve Quality of Life for Residents, Spur Needed Downtown Development
Late last week, U.S. Senator Charles E. Schumer announced that the Small Business Administration (SBA) has granted a $1.15 million loan for Hart’s Local Grocers, which will open a grocery in downtown Rochester on Winthrop Street. Schumer urged SBA Acting Administrator Marianne O'Brien Markowitz to expeditiously review the loan in a letter earlier this week, explaining that this loan was particularly important because Hart’s needs it to lock-in the remainder of the financing necessary to begin construction and to open the new grocery on schedule in May. Along with a $3 million loan from Canandaigua National Bank, this financing will help transform a 20,000 square foot former auto repair shop in downtown Rochester into the new grocery. Schumer explained that this grocery will be a boon for local residents that will create jobs and turn an unused property into a business that generates economic activity.
“I am very pleased to announce that the Small Business Administration has committed to this $1.1M loan for Hart’s Local Grocers. And it’s in the nick of time too – the loan will allow them to close on their financing today and keep their construction plan on schedule,” said Schumer. “This new grocer will bring a host of benefits to downtown Rochester – besides providing convenient access to a healthy grocery for downtown residents, Hart’s Local Grocers will transform a critical, unused property in the East End turn it into an operational business – which encourages commercial development in the area, and generates economic activity and tax revenue for the City.”
“We had amazing support from our representatives, who contacted the U.S. Small Business Administration to inquire on our behalf, and sure enough our loan approval came within days. We extend our thanks to Senator Charles Schumer, whose office reached out and offered help upon hearing there had a been a delay in the processing,” said Glenn Kellogg, managing partner at Rochester Local Capital and president of Hart’s Local Grocers LLC
Hart's local grocery is planning on opening a store this May at the former Craig Autometrics building on Winthrop Street. Hart’s Local Grocers has secured a roughly $3 million loan from Canandaigua National Bank. However, in order to receive the $3 million private loan needed to begin construction, they need confirmation of SBA approval of the loan.
While over 5,000 people live in Downtown Rochester, the area has not had a sizable grocery store since the 1990s. With more people moving to the neighborhood in recent years, the demand for a grocery store has grown. Schumer said that the new grocery store would provide a needed service for downtown residents while creating construction and direct jobs in the area.
A copy of Senator Schumer’s letter to the SBA appears below:
Dear Acting Administrator Markowitz,
I am writing on behalf of a significant new commercial development in downtown Rochester, NY which is dependent on timely action by the U.S. Small Business Administration (SBA). Specifically I ask that the SBA expedite consideration of a $1,150,870 SBA 504 loan for a new downtown grocery market in Rochester, Hart’s Local Grocers. I understand the application is currently pending with the SBA loan office in California and awaiting final processing.
Hart’s, which will initially employ about 20 workers, is counting on being able to open for business in May, 2014. In order to keep to this timeline, the business has secured an approximately $3 million loan with Canandaigua National Bank to begin renovations to transform a 20,000 square foot former automobile repair shop in downtown Rochester into the new grocery store. However, in order to close on this $3 million loan as planned this week and keep to their timeline, there is a requirement that the SBA must first provide a commitment letter approving the accompanying SBA 504 loan.
Hart’s will be the first sizable grocery store in Rochester’s downtown in over two decades and thus the economic development benefits of this new venture extend far beyond the new construction and direct jobs that will be created at the store itself. For years local officials have cited the lack of a grocery store as a major impediment to attracting new housing, residents, and other business activity into Rochester’s downtown core. Thus, the timely opening of this new grocer is a major linchpin in the City of Rochester’s efforts to support continued vibrant mixed-used development in the heart of the city.
Therefore, I ask the SBA to provide timely consideration on this 504 loan application and provide the requisite commitment letter needed to enable this important development to begin construction and open on time this May.
Sincerely,
Charles E. Schumer
U.S. Senator