Helping Immigrant Business Owners Tap Growth Potential in Queens
Helping Immigrant Business Owners Tap Growth Potential in Queens
This summer, thanks to an internship program at Hamilton College, I had the unique opportunity of spending almost five months interning at BCNA at the Jackson Heights office in Queens.
Queens is not only the second largest 
borough in New York City, it is also one of the most diverse demographics in the country, home to Chinatown in Flushing, Little India in Jackson Heights and other Hispanic, European and African neighborhoods.
As with the first few waves of immigrants to the city, current immigrants also come to the U.S. with diverse skill sets. Leading immigrant businesses in Queens include salons, restaurants serving authentic cuisine, and grocery and convenience stores.
Most of BCNA’s clients know how to run a business, know the specific demographic that their business is catering to, and are very hard workers. But while they can make a decent living operating small shops or restaurants at the back of their house, many of our clients are running businesses that have much higher growth potential. These clients need a source of financing that will fuel expansion, but are unfortunately usually rejected by conventional banks.
Client Kalsang Buchung left Nepal in 2006, immigr
ating to the U.S. in search of a better life for himself and his family, starting out working as a taxi driver and in delis and grocery stores. After 7 years, he had saved up money to open his own store. While he had enough savings for the majority of the initial investment, he borrowed the rest from two relatives.
In July, 2013 Kalsang opened his own deli – Smart Start – on Myrtle Avenue in Jackson Heights. Because of his experience – and good instincts about demand in the predominantly South Asian neighborhood – his store is off to a great start. So much so that he has already paid back his two relatives.
This would have been a textbook credit-building experience for Kalsang’s business had he borrowed from a bank instead of his relatives. Unfortunately, cultural roots and a lack of information about the importance of credit history in America have left Kalsang with a relatively low credit score, which left him with little chance of securing any significant, affordable loan from a conventional bank.
With its wide selection of fresh groceries, competitive prices for products such as Indian rice and dhal, which are staples in Jackson Heights, and good customer service, Smart Start experienced great sale volume right from the outset and had almost run through its entire inventory. Because commercial banks rejected his loan applications and he was unwilling to ask relatives for favors again, Kalsang turned to BCNA. After determining why Kalsang had a low credit score, and evaluating Smart Start’s sales-per-month data, is was clear that Kalsang was an excellent candidate for a loan and was more than able to make the monthly payments. BCNA issued him a loan, and he was able to restock his inventory to continue to increase sales.
Kalsang Buchung’s story is a common one among immigrants in Queens and one that I had heard several times during my internship at BCNA’s Queens office. It is an excellent example of the pivotal role BCNA plays in local New York economies and communities. The microloan he received from BCNA allows Kalsang to keep stay in business, maintain his payroll and fuel the local economy. It also allows him to build his credit score and make him eligible for a conventional bank loan of a higher amount.
Someday, Kalsang Buchung may own a chain of grocery stores that not only give New Yorkers access to the great spices of South Asia, but also provide New Yorkers with jobs. Of course there is no guarantee, but BCNA has given Kalsang the chance that he – and every immigrant – so richly deserves!