Schumer Reveals: 300 Future Jobs at Infotonics at Risk Due to Arbitrary Deadline - Presses EDA Chief to Extend Funding Deadline for Just a Few Months to Allow Job Growth to Take Place

Press Release

Today, U.S. Senator Charles E. Schumer announced that he has personally called John Fernandez, the Assistant Secretary of Commerce for Economic Development at the Commerce Department, to urge him to approve a short extension on a grant that a local small business, Infotonics Technology Center, has received through a Commerce Department Program that is meant to spur hiring and grow the economy in communities throughout the country.

Infotonics initially received grant offer 3 years ago from Economic Development Agency (EDA), but the company could only draw on the $3 million grant if it lined up the necessary private matching funds. Since the grant was offered three years ago Infotonics went through the difficult process of securing private investment for their business- a required condition of the Economic Development Administration's loan. A year ago the company brought in a completely new leadership team that is now on the cusp of securing enough private investment to meet the Administration's requirements and its initial goal of creating a thriving business in Ontario County.

Recently, Infotonics has presented the Economic Development Administration (EDA) with a rigorous set of benchmarks that it has met over the last year and is simply asking for a short extension on the initial grant offer to secure the last bit of private investment that will allow the project to run at full throttle and meet the private investment requirements. Schumer and Fernandez had a positive conversation during which Fernandez expressed interest in the project and said he would take a hard look at the request for an extension. Without the extension, the grant offer could expire in the matter of days.

"Infotonics is on its way to being the comeback kid of Rochester-Finger Lakes region," Schumer said. "Just a few years ago this project was in serious doubt, but new, energized leadership has brought this company to the cusp of success. Private investment pledges have been coming in at a steady clip and Infotonics just needs a little more time to lock in the final dollars. The EDA needs to realize that we've got a company ready to create jobs at a time when they are sorely needed and give the company an extension."

New businesses undergo a rigorous competitive bidding practice to receive a startup grant from the Economic Development Administration. The loan from the EDA requires the new business to seek matching funds in order to demonstrate community interest in the business and viability. Infotonics has already secured $33 million in private investment commitments at a pace that has only increased since its new leadership has taken over. The company's total business plan projects the creation of 300 jobs which are greatly needed at a time of nearly 10% unemployment. New companies participating in EDA development programs often seek and are granted extensions on their initial loans. Often times though, the EDA does not take into account factors like a change in leadership which is clearly the driving factor behind Infotonics' recent success. An extension on Infotonics' loan obligations would be a huge shot in the arm for this emerging business and an entire community that is eager to see job growth.

Infotonics Technology Center is a incubator for high tech business in Ontario county, formed by a consortium of industry and government to promote economic growth through world-class high tech innovation. The technology is essential to satisfy the growing technical demands in security, defense, medical, transportation, industrial, consumer electronics, telecom and more. The grant will be used to construct new high tech buildings and purchase high tech equipment to further foster business. There are five different projects that are relying on the equipment and space that will be available through the grant.

Source