Legendary Gino’s Pastry Shop on Arthur Avenue denied small business loans

NEW YORK — Gino’s Pastry Shop on Arthur Avenue is best known for a few things — from its homemade authentic treats to the quality time people have enjoying them.

“You come here and you’re buying a cannoli, but they’re spending an hour cause they just have a good time here,” said owner Jerome Raguso.

It’s a 63-year-old family business and it’s legendary on the block. However, Raguso is now on the verge of closing his doors because of financial setbacks from the pandemic. 

“While we were closed, I still had to pay my health insurance,” Raguso said.

Expenses piled up for the beloved shop, so it turned to the Department of Small Business Services for help. 

“So, we tried to apply for grants just to take care of that… for some reason we got denied,” Raguso said.

“If you got that money from those loans, would you be in the same financial place right now?” CBS2 asked.

“No, we would have been out of it,” he said.

Other small businesses across the Bronx were also denied loans, too. A report from the city Comptroller’s Office says the Bronx received the least amount of loans and the smallest dollar amount distributed. The report also says the borough accounts for 7.7% of the city’s small businesses, but only received 2.2% of the SBS loans.

CBS2 reached out to the city for comment about why the Bronx received such few loans compared to the other boroughs, and we’re still waiting to hear back.

Rob Walsh, the interim president of The Bronx Overall Economic Development Corporation, says the city turned its back on the Bronx. 

“When I heard that only 9 out of 515 applicants for loans from the Bronx got approved… it’s pretty outrageous,” Walsh said.

Walsh said it’s now time for the department to get creative when helping small businesses, like using technology and more outreach in the community.  

As for Gino’s, it is hoping the city can change its policies in the future to be more inclusive. 

“There are businesses that just opened up that are getting money because they want to keep them open… but what about the mom and pops that have been here for 40, 50, 60 years?” Raguso said.

You can email Shosh with story ideas in the Bronx by [email protected].