Philadelphia, August 28 - Today, the City of Philadelphia, with the support of the Philadelphia Commercial Development Corporation’s (PCDC) Board, elected not to renew contracts with the organization as part of the City’s on-going and aggressive effort to eliminate redundancy in business services, consolidate business support operations and make lending to businesses of all sizes more efficient. Starting June 30, 2009, all small business lending operations will be housed in the Philadelphia Industrial Development Corporation (PIDC), which has been increasing its small business lending activity in recent years.
“Reducing administration costs associated with lending will allow us to better serve all businesses - particularly small businesses,” said Mayor Michael A. Nutter. “More efficient delivery of services to minority, women and disabled-owned business will only increase their access to opportunities both within City contracting and in the private sector. The entire business community, including those previously served by PCDC, should continue to receive excellent technical assistance, business education services and access to lending opportunities.”
“During these tough economic times the City found it necessary to closely examine the agencies it was funding,” said Kevin Dow, Deputy Commerce Director and Acting Chief Operating Officer. “Each of PCDC’s primary programs was duplicated at Commerce, PIDC or at agenciessupported by City funding. The impact of these redundancies are many: duplication of staffing and associated costs, competing applications for grant resources, lack of transparency and accountability of a central organization, and confusion regarding products and services amongst it core client base, small businesses.”
PIDC has successfully implemented several small and minority-business focused lending programs, including loan and guarantee programs for small minority contractors. Directing Community Development Block Grants resources previously administered by PCDC to PIDC will enable the organization to build on this success to offer a true “one-stop” financing shop for all businesses.
“We welcome the opportunity to provide this invaluable resource to the business community especially during this time when traditional financing options are not readily available”, said Peter S. Longstreth, President of PIDC.“We are encouraged by this Administration’s commitment to continue PCDC’s 35 year legacy of providing support to small businesses”, said Robert Isard, Chairman of PCDC’s Board of Directors.
This effort is to achieve an overall objective of a better performing government,” said Mr. Dow. “We realize that small businesses are crucial economic engines especially during times of recession. Our small and minority, woman, and disabled business leaders make tough decisions every day to keep their doors open and their workers employed. We’re pushing to be just as tough minded about our own operations to make sure that businesses have access to financing in the easiest, most efficient environment possible.”
The Philadelphia Industrial Development Corporation, a private, not-for-profit corporation, was created in 1958 by the Greater Philadelphia Chamber of Commerce and the Commerce Department of the City of Philadelphia to promote economic development and job creation throughout the City. PIDC provides financing programs and real estate products to business and developer client groups in all neighborhoods of Philadelphia and is managing the redevelopment of The Navy Yard.
For further information on PIDC, contact Peter S. Longstreth, President, Philadelphia Industrial Development Corporation, 2600 Centre Square West, 1500 Market St., Philadelphia, PA 19102-2126, phone (215) 496-8181.
