Schumer upbeat on loan bill, Long Island economy

Sen. Charles Schumer, guest speaker at a Long Island Association breakfast Monday, arrived a bit too late to hand out plaques to those who won Small Business Council awards, but he brought along optimism for the future and more important, the promise of loans to companies.

The New York Democrat told a gathering at the Crest Hollow Country Club in Woodbury that $30 billion in loans for small companies will soon be available.

A Schumer aide said later the bill authorizing the money had passed the House and is awaiting Senate approval. The money, the aide said, would be made available to community banks, which would use it to make loans with interest of between 1 percent and 5 percent.

"This will make it broader, easier and quicker for those of you looking for loans," Schumer said. "Please look for it. It should pass this week."

President Barack Obama initially wanted to use money from the Troubled Asset Relief Program for the loans, but the House decided against that and authorized new funding entirely. The Senate could change that back to TARP funds, the aide said, and then both chambers would have to reconcile on a final bill.

Schumer was upbeat about the Long Island economy, saying its strengths are in its research and educational facilities such as Brookhaven National Lab and Stony Brook University, and technology companies such as Northrop Grumman Corp.

But he was not as sanguine about the national economy. Noting disappointing employment gains across the country, Schumer said, "We haven't reached the point where we're poised for growth."