Boston Beer awards microloans to two Boston businesses

By Christina Reinwald, Globe Correspondent

The Boston Beer Co.’s Samuel Adams Brewing the American Dream philanthropic program, in partnership with microlender ACCION USA, will provide $3,500 in loans to two Boston eateries: Lulu’s Sweet Shoppe and Boston Pretzel Bakery. Jim Koch, founder of Boston Beer, revealed the awards today in a presentation at Lulu’s, which is located in the North End.

Sandy Russo, owner of Lulu’s, received a $2,000 loan to purchase Snow-Cone and chocolate tempering machines. Linda DeMarco, owner of the Boston Pretzel Company, will use her $1,500 loan to revamp her website and purchase an oven.

Koch established the lending program in 2008, targeting small businesses in the food, beverage, and hospitality industry. When he founded Boston Beer Company in 1984, Koch had a tough time getting funding from banks for his small business, he said.

Loans from the program can range from $500 to $25,000. Brewing the American Dream has loaned more than $500,000 to small businesses while saving or creating 589 jobs, according to the program’s website.

“Businesses use the loaned money to grow, create jobs, and ultimately pay back, so we can lend that money again,” Koch said. “One dollar can be lent out eight times before we replenish it.”

In addition to microloans, Brewing the American Dream provides business advice and coaching to the small businesses.

“We have more money to lend than we have qualified applicants,” Koch said. “Small businesses are not necessarily aware of what resources are available. You’re just trying to survive. I thought, what does a small business need that maybe we can help out with?”