SBA grant to LIFT to boost rail suppliers

Long Island has always talked about building industries in technology or biotech. But talk about a railroad industry is relatively new.

Such talk got a boost earlier this week when the U.S. Small Business Administration approved a $200,546 grant to the Long Island Forum for Technology to help small companies compete to win contracts to supply train parts.

LIFT was one of just 11 organizations nationwide, chosen from about 300 grant applicants, to win an SBA grant to create a Small Business Teaming Pilot Program. LIFT president Frank Otto said the organization would focus on bringing together the 40 LI companies already supplying train parts, or security systems such as sensors, to the railroads.

"We could have a rail security industry on Long Island," said Otto. "We have a lot of small entrepreneur companies. They don't have a large voice."

Earlier this year LIFT set up the Long Island Rail Suppliers Alliance, headed by Ken Bauer, former president of the Long Island Rail Road. Bauer organized several meetings between the small companies and large railcar makers, including Bombardier of Montreal.

"You need some resources to build this thing," Bauer said of a potential industry on the Island. "This is a good start. We're going to set up a business plan as to how we're going to move this rail alliance."

In May, Sen. Kirsten Gillibrand (D-N.Y.), wrote to SBA Administrator Karen Mills urging support for LIFT's application. "Funding for LIFT will help grow the local economy," Gillibrand said in her letter.

Otto said if the SBA likes what LIFT does in the first year of the grant, LIFT can apply for a second and third round of financing. Grants are capped at under $500,000, he said.