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The Buffalo and Erie County Regional Development Corporation unanimously approved a half-million-dollar allocation Wednesday, called the Sumitomo Employee Loan Fund, designed to create an entrepreneurship program for employees interested in starting their own business.
The move comes more than a month after 1,500 employees were let go following the immediate closure of the company’s Town of Tonawanda plant on Nov. 7.
"It’s very difficult sometimes to start a brand-new business and so having an opportunity to provide some funding to help employees get started on that path we think is very important," said John Cappellino, president and CEO, Buffalo and Erie County Regional Development Corporation.
County leaders say since they couldn’t stop the closure, they can continue to help.
"There’s other options out there, including being your own boss," said Mark Poloncarz, Erie County executive. "Some of them may have a side project already and now they want to make it full-time. This gives them the ability to access capital."
The board is also working with the company to discontinue some of the existing tax programs it had qualified for.
Leaders say plans include stripping the company of its property tax exemption and any other exemptions moving forward.
"So for us, we’re going to recapture any dollars that we can for the failure to meet their goals and then stop the tax incentives going forward," said Poloncarz.
That comes as the board looks to hammer out the details of the loan program, recognizing the important role small businesses play in driving both the local and state economy.
"Not only with our loan program, but programs across the state," said Cappellino. "It’s very important that we continue to support entrepreneurship and people who are interested in starting their own small business, both locally and across the state. It is a huge driver of our growth and job creation in our community."
