November 28, 2004
Erie County Antique Auto Restoration Business Example of
Success of Loan Program of New York Businesses Development Corporation and State Pension Fund

State Pension Fund Also Adding $100 Million to NYBDC Loan Program

Aero Collision and Fabrication in Lancaster, Erie County, New York has expanded and added jobs thanks to a $162,500 loan from a 17-year partnership between the New York Business Development Corporation and The New York State Common Retirement Fund that provides loans to small businesses in New York.

The Retirement Fund is adding $100 million to NYBDC to fund new loans, on top of two previous $100 million commitments, New York State Comptroller Alan Hevesi announced today at a press conference at Aero’s offices on Ransom Road.

“Most of us are familiar with our neighborhood businesses, the laundromat down the street, the restaurant on the corner, or the garage where you get the car fixed. Small businesses like these and the entrepreneurs who run them not only provide essential services, but account for much of the job growth in New York State,” Hevesi said. “It’s tough for small businesses to get the assistance they need to grow. We are happy to play a small part in helping them get what they need. At the same time, this renewed agreement will earn a competitive return for the Retirement Fund.”

Senator Dale M.Volker said “This is yet another fine example of how the State of New York continues to be partners with our region’s private sector to create and expand employment opportunities for our residents. I appreciate Comptroller Hevesi’s announcement of their significant financial investment for small businesses located here in western New York and throughout the state. The State Legislature, working collaboratively with the Governor Pataki, Comptroller Hevesi and other state agencies, are committed to investing in our business community and the people that make New York great.”

Assembly Majority Leader Paul A. Tokasz said “Small businesses form the backbone of our economy across New York State. It is fitting for the state to help seed the expansion of small businesses. Comptroller Hevesi’s stewardship of the New York State Common Retirement Fund, in partnership with the New York Business Development Corporation, has made the wise investment of the loan to Aero Collision and Fabrication possible.”

This is the State Pension Fund’s third $100 million commitment to the New York Businesses Development Corporation since 1988, for a total of $300 million. The Fund’s first commitment in 1988 was followed by a second $100 million commitment in 1998. Of the total amount, more than $180 million has been invested in more than 600 businesses.

In New York State small businesses (less than 100 employees) provided 60 percent of the job growth between 2003 and 2004. These businesses had a 1.3 percent growth in employment compared to a 0.2 percent decline for businesses with more than 500 employees. Within Erie County small businesses account for 97 percent of all businesses and provide almost 55 percent of the jobs.

Aero Collision and Fabrication used its loan to build a new 9,000 square-foot building that helped owner Kenneth Pezdek Sr. triple his business and create new jobs. Pezdek also plans to hire additional people as the business continues to grow. In addition to auto body and collision work, Aero specializes in antique auto restoration, custom cars and custom paint, fleet painting and metal fabrication.

“I founded Aero Collision and Fabrication more than 20 years ago and have been steadily growing my business since,” Pezdek said. “NYBDC and State Comptroller Alan Hevesi made it possible for me to build the facilities I needed to accommodate the growing demand for our services. As a result, I was able to increase my staff from two to five people and I expect to hire even more people in the near future. My thanks go out to NYBDC and Comptroller Hevesi for helping me to realize my business goals.”

“Aero Collision and Fabrication is a perfect example of how the Retirement Fund’s partnership with NYBDC has been a success. Mr. Pezdek is not only expanding his business, but he now is creating new jobs thanks to his ability to obtain financing from this program” Hevesi said.

Patrick J. MacKrell, Executive Vice President and Chief Operating Officer of New York Business Development Corporation, said “Our relationship with the New York State Common Retirement Fund is unique. The proceeds of the Retirement Fund loans have supported hundreds of long-term, fixed rate loans made by NYBDC to small and medium-size businesses across New York State. Our company partners with banks across New York State and the Retirement Fund to promote access to capital for the development and growth of small business. The expansion of Aero Auto Body Repair represents that partnership at its best; with the Bank of Akron and funding from the Retirement Fund, NYBDC helped made Mr. Pezdek’s dream a reality. Our loans make a real difference and provide genuine opportunities which would not, but for our involvement and the support of the Retirement Fund, be available to the borrowers.”

Anyone interested in inquiring about, or applying for a small business loan through this program should contact the New York Business Development Corporation directly at (518) 463-2268.

Including Aero Collision and Fabrication, the NYBDC and NYSCRF have loaned about $1.2 million to four businesses in the Buffalo region since 2003, when Comptroller Hevesi assumed office. These loans include Indus Hotels, Inc., operator of Microtel Inn & Suites in Allegany ($460,000); Security Investors Group, Inc., owner of DFT Security in Buffalo($400,000); and Crompton Holdings, LLC, owner/operator of Yogi Bear’s Jellystone Park #105 in North Java($250,000).