LONG ISLAND DEVELOPMENT CORPORATION
GREATER NEW YORK DEVELOPMENT COMPANY
LIDC Grows in NYS

By Maureen Traxler

Roslyn Goldmacher has a knack for making dreams come true for small business owners on Long Island. Through the Long Island Development Corporation (LIDC), she provides crucial second mortgages through the federal Small Business Administration (SBA) 504 loan program that allow owners to buy, renovate or construct buildings and purchase equipment.

"LIDC is the only SBA 504 economic development corporation in the state, and, frankly, one of only a few in the country that is totally independent," says Goldmacher. What makes LIDC unique is "its perspective," she adds. "We have a private sector mentality. We operate quickly and efficiently small businesses can't wait!" She attributes much of LIDC's successful track record to "the handholding, technical assistance and resources we bring to each loan." That track record includes providing loans and technical assistance under 14 government programs, making over $650 million in loans and leveraging almost $2 billion into the Long Island economy.

"Small businesses don't have the access to capital markets that big businesses have," she remarks. "That's what the 504 program does; it gives them access." In addition to 504 and other government loans, she provides instructional workshops, advice and technical assistance to encourage their success.

New Venture
Now, under Goldmacher's leadership, LIDC is expanding its services into New York State. "To better reflect who we are to those beyond Long Island's boundaries," Goldmacher says LIDC spun off under the name Greater New York Development Company.

"Economic development corporations were originally structured geographically" notes Goldmacher, but about four years ago, she adds, "SBA changed the rules, allowing development corporations to conduct business anywhere in their state." Recognizing the opportunities as well as the challenges to her Long Island base, she decided to launch an effort to further market LIDC's distinctive services. The decision was rooted in her belief that unlike banking institutions and their affiliates that decide small business loans by committee and whose criteria is strictly ability to pay, LIDC participates in loans to prospective successful business owners with an eye toward promoting strong communities through job creation, revitalization and sustainable growth.

An attorney, licensed real estate broker, columnist, lecturer, innovator and businesswoman, Goldmacher is the founder and driving force behind LIDC, which is celebrating 25 years of successful lending. LIDC has been recognized for its accomplishments, beginning with its receipt of the SBA Outstanding Achiever Award just three years after the not-for-profit, regional economic development corporation was chartered by SBA. More recently, LIDC is a four-time SBA Pinnacle Award winner for making the most loans in any given fiscal year. Goldmacher and LIDC are pacesetters in lending on Long Island and models for economic developers across the country.

LIDC also seeks creative ways to partner with economic development organizations, utilities and municipalities. For instance, through LIDC's partnership with KeySpan, the energy company offers abatement on equipment and service to any LIDC SBA 504 loan recipient in their service area. Goldmacher believes LIDC's Greater New York Development Company can replicate this partnership to help KeySpan customers in Queens, Brooklyn and Staten Island grow and prosper.

"It's very exciting," adds Goldmacher, "because there's plenty of business to be done."

Long Island Development
Goldmacher says that LIDC remains committed to Long Island and sees future development on the "Two Forks," redevelopment in western Nassau and Suffolk, and revitalization projects.

Recognizing that "Long Island is a maturing community," Goldmacher notes that it's imperative to utilize resources properly in order to maintain quality of life. "Getting involved with Sustainable Long Island fits with our mission," she adds, since the organization encourages sound economic development, redevelopment of brownfields and social equity.

"It's the social equity piece that differentiates Sustainable from other smart growth organizations," says Goldmacher. "Everybody gets a piece of the pie; everybody is brought along. That's what we do by helping to create successful entrepreneurship." She notes that SBA 504 loans can be used in mixed use developments, where commercial and residential coexist. Mixed use, she adds, helps the affordable housing crunch, helps businesses use cash flow and helps redevelop downtown areas. Environmental cleanup of brownfields is also within 504 financing.

In addition, Goldmacher initiated and serves as chairman of the Long Island Fund for Sustainable Development, which provides funding to support Sustainable LI projects.

Going the Extra Mile
Over the years, Goldmacher and her staffÑ16 full-time and 8 part-time employeesÑhave used their knowledge, extensive research database and creativity to complete a wide variety of loans that other lenders may not have even considered. They also bring a "value added" feature to their lending. Take for example: HMS Bounty.

Two entrepreneurs sought to purchase the 18th century sailing ship to be used for seaside festivals, corporate outings, a workshop site for seamanship skills, and possibly a set for movies or television commercials. With the high purchase price and funds needed to complete renovations, the total project came in at a hefty sum, and due to the specialty nature of the collateral, it was considerably risky for traditional lenders. Yet, LIDC was able to offer a 504 loan.

"We do steel and water, in addition to brick and mortar," quips Goldmacher.

Another example is the creative loan package crafted for Gold Pure Food Products Company, the world-famous manufacturers of horseradish and other products. Gold's began as a family-owned business in Brooklyn, with the "second generation" moving to Long Island. A dilemma arose when the company wanted to expand, but didn't want to give up their Brooklyn connection. Thinking outside the box, LIDC petitioned the Town of Hempstead to rename the street on which they purchased property to "Brooklyn Road," helping the family feel right at home in HempsteadÑand, they came in with a 504 loan, too. There are more examples like these on the LIDC website, www.lidc.org.

In 1986, when the Defense Department wanted to keep small businesses viable, LIDC was granted a contract to participate in PTAP (Procurement Technical Assistance Program) and has helped small companies obtain and fulfill more than $1 billion in government contracts.

The fastest growing segment of the economy is women-owned businesses, notes Goldmacher. Through the Long Island Small Business Assistance Corporation (LISBAC), LIDC offers a lending option to women business owners. LIDC also proposed and created a community development program in the Town of Hempstead through the HUD 108 microloan program, which assists low to moderate income business owners in becoming entrepreneurs.

In an effort to help defense-dependent companies diversify after Grumman's departure from Long Island, LIDC provides financing under its Targeted Industry Revolving Loan Fund. Such targeted industries include medical, biomedical, and pharmaceutical companies; software, hardware, technical equipment or electronics developers or manufacturers, graphic communications or businesses emerging from the New York State incubator program.

Goldmacher's well established marketing approach includes reaching out to "the middle men" in the loan processÑbankers, lawyers, accountants, real estate and mortgage brokersÑto tell them what LIDC can do for their clients. In addition, she spreads the word through print sources and writes monthly columns for Networking¨ magazine and the New York Real Estate Journal. She says, she's a member of "the lunch-brunch-munch circuit," speaking to organizations and spreading LIDC's message.

Personal Fulfillment
Goldmacher has served for 19 years on the National Trade Association board, and is directly responsible for program improvements. On the National Funding Committee of SBA, she proposed initiatives to bring organizations into the digital world, such as electronic signatures and email use. She currently serves on the board of SCORE, the Service Corps of Retired Executives, whose volunteers counsel entrepreneurs.

The recipient of numerous awards, Goldmacher is a Governor's appointee to the Regional Economic Development Partnership Program and the Executive Committee of the Long Island Incubator Task Force, and serves on the National Women Business Owners Corporation (NWBOC). She is a co-founder and board member of Long Island Partnership, and is active with the Long Island Business Development Council, a 45-year-old business networking group.

Goldmacher is a graduate of Cornell University's School of Industrial Labor Relations, and received her J.D. from Hofstra University's School of Law. After admission to the Bar, she opened her own law practice with one of her professors as her first client. Goldmacher appreciates and collects Disney memorabilia. Encouraged by a friend to bid at a Sotheby's auction on limited edition Mickey Mouse statues crafted by Disney artists and noted personalities for the company's 50th anniversary, two 700-pound, six-and-a-half-foot tall Mickey "likenesses" now grace her Westbury backyard.