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Nazareth, Pa., United States

Friday, April 16, 2010

CACLV Helps Dogs Keep Up With Latest Fashions

In October, I first told you about The Rising Tide Community Loan Fund, a small-business lending arm of the CACLV. It's the Lehigh Valley's only federally-certified microlender, and was created to extend credit to entrepreneurs in communities where resources and opportunities for growth are limited. Primary targets are lower-income, minority borrowers or businesses located in distressed neighborhoods.

Since October, Rising Tide has lent to an additional seven businesses. This makes 76 microloans for $1,447,000, creating or saving 142 jobs.

Rising Tide itself is funded through loans, grants, and private contributions. This includes local, state and federal government, banks, businesses, and individuals. Four loans have failed. Most months, delinquencies are around three or four per cent.

Here's a listing of the seven businesses financed since October

Christine’s Secret Garden, a gourmet tea shop located in Easton, borrowed $29,000, saving one job. Do any tea party people hang out there?

Milou Couture, a designer dog clothes manufacturer in Allentown, borrowed $15,000, saving three jobs and several dogs. Founder Genny Perez, incidentally, dresses Chispita, a Jack Russell Terrier in Univision's “Despierta America”.

MaidPro of the Lehigh Valley, located in Bethlehem, is a residential and commercial cleaning service. It borrowed $33,919, creating three jobs and saving seven others. This is one of the top 50 franchises for minorities, according to the National Minority Franchising Initiative.

The Grid Code, an indoor airsoft and foam dart gaming center in Allentown received $14,000, creating two jobs. Foam dart gaming? I was there with my grandson when it first opened. They were using BB guns and all the kids shot my ass. I'm going back there with a bazooka next time.

The Yoga Loft, a yoga studio in south Bethlehem, borrowed $20,000, saving two jobs. The drop in fee is $14. I walked in there and handed them a $20 bill and did my thing. When I asked for my change, I was told, "Change must come from within."

hField Technologies, Inc., a technology business located in the Ben Franklin Technology Partnership at Lehigh's Goodman campus, received $35,000, leading to the retention of six jobs. One of their fields of expertise is setting up hot sports throughout municipalities, enabling bottom-feeding bloggers like me to hook up to the 'Net anywhere.

Daily Grind, a café in Bath, borrowed $15,000, creating three jobs. That's for the coffee party.

Chris Hudock, Director of The Rising Tide, said, “Access to credit drives the creation of economic opportunities. Too few small businesses are gaining that access in this recession,” adding, “we are working hard to be the antidote to the tight credit market, at least for microenterprises in the Lehigh Valley.”


Katie Bee said...

Creating/saving 142 jobs and a couple dogs? I like the sound of that.

Anonymous said...


I remain suspicious of the term “saved jobs”. As we now understand these claims are often inflated by the administration and those seeking funding. Unlike “employment statistics” that can be verified, claims of saved jobs are just that, “claimed”.
Scott Armstrong

Anonymous said...

There are lies, damn lies, and then statistics. The saved jobs numbers are as genuine as Biden's hair. The emperor has no clothes and CACLV should get back to its core mission; not the core mission of keeping their guy in office.

Anonymous said...

Ed Pawlowski has created lots of new jobs at city hall without any funding from the government or CALV. That’s real initiative.

Allentown Democrat Voter

Anonymous said...

I agree with Scott, 'saved' jobs means nothing to me. What does though are the businesses that are in business due in part to this Fund.

Say what you will about Alan Jennings, businesses like this get no attention from banks and would have nowhere else to go.

Now will all of them work? Of course not - this is very high risk lending. They do it well.


Anonymous said...

Four loans have failed.
Is that four in the total life of this agency? How did you obtain these figures? Would you mind listing the four, as we know of one and wonder if that is included. When we called Rising Tide a year ago to inquire about this one small business start-up that closed within a 1-1/2 years, we were turned away with a statement the details were confidential. We are most interested in how you obtained this data. Thank you for your hard-working efforts.

Anonymous said...

Would you explain the term you've used, "saving" jobs. If these are new businesses how were any jobs "saved"? Yes, we can understand the term "new jobs"
utilized within a start-up, but
"saved" jobs?

Bernie O'Hare said...

" How did you obtain these figures? Would you mind listing the four, as we know of one and wonder if that is included."

Sources: Rising Tide, this blog, Alan Jennings & the 'Net.

I am unable to list the 4 that failed.

Jennings stated in October that his books are open and, barring some confidentiality requirement I know nothing about, you should be able to get some of that data.

Bernie O'Hare said...

"Would you explain the term you've used, 'saving' jobs."

I suspect that, in most cases, it is impossible to make a causal connection between jobs saved or retained, and a loan. Fair point.

But I think it is also fair to argue that these loans certainly help to save or retain existing jobs.They help keep the businesses going, and the people who work there.

Anonymous said...

The Yoga Loft, a yoga studio in south Bethlehem, borrowed $20,000, saving two jobs. The drop in fee is $14. I walked in there and handed them a $20 bill and did my thing. When I asked for my change, I was told, "Change must come from within."

I'm gonna remember this for my next date!

michael molovinsky said...

saved jobs seems to imply that without the loan they would have folded. could it be that they're using those loans for income and that their business still is a failure by real standards? what changed to turn a failure into a success?

Anonymous said...

MM = bulls eye.

Anonymous said...

Many small businesses are only successful to the point that they can support someone's family or even some employees, but are not profitable enough to the point of having a $20,000 rainy day fund. If you need a new piece of equipment on short notice, a $20,000 loan DOES save your business. But it doesn't mean you were a failure otherwise. I think Michael Molovinsky's point is particularly cynical and he takes any opportunity to attack CACLV's loan program and its borrowers. He seems to subscribe to some definition of a business owner having some particular list of qualifications that cannot possibly be compatible with a loan program at CACLV.

Also, four loans have defaulted does not mean that four businesses have failed. A successful business can default on a loan, and a closed business can continue to repay loans. The distinction seems to be lost on many readers.

michael molovinsky said...

anon 5:13, four comments essentially said the same thing i did, but mine are labeled cynical attacks? i suppose that's better treatment than i usually get here, usually i'm accused of calling someone or other a liar.

Anonymous said...

The Rising Tide is a wonderful program and CACLV deserves a lot of credit for establishing it and managing it. People often criticize economic development for being about bringing in big businesses who need big financial incentives. Rising Tide is a form of economic development that helps the little guy. And, the default rate you quote is one lots of banks would be jealous of, especially in these trying economic times. Kudos to CACLV and Alan Jennings!