N.Y. Firms, Residents Hurt by Steam Blast Eligible for Federal Loans

New York Governor Eliot Spitzer and New York City Mayor Michael R. Bloomberg announced that the federal Small Business Administration (SBA) has issued a physical and economic injury disaster declaration for the Boroughs of Manhattan, the Bronx, Brooklyn and Queens that were impacted by the July 18 steam pipe explosion in midtown Manhattan. Also declared were the contiguous New Jersey counties of Bergen and Hudson.

“This is certainly welcome news for businesses and residents who have been affected by the steam pipe explosion and the ongoing recovery efforts,” said Spitzer. He thanked the SBA for its “quick response and for making available low-interest loans to speed the recovery of the more than 1,000 businesses that have been affected.”

Low-interest economic injury SBA loans provide working capital to assist eligible small businesses recover from losses caused by a disaster or emergency such as the July 18 steam pipe explosion. Small businesses impacted may be eligible for an economic injury disaster loan of up to $1.5 million to meet necessary financial obligations.

Businesses of all sizes may apply for a physical disaster loan of up to $1.5 million to repair or replace damaged real estate, equipment, inventory and fixtures. The loan may be increased by as much as 20 percent to protect the property against future disasters of the same type. These loans will cover uninsured or under-insured losses.

Homeowners and renters may apply for physical disaster loans to pay recovery costs not covered by insurance. Renters and homeowners alike may borrow up to $40,000 to repair or replace clothing, furniture, cars or appliances damaged or destroyed in the disaster.

The application deadline for physical disaster loans is September 25, 2007; the deadline for filing applications for economic injury loans is April 28, 2008.

New York City found that at least 10 businesses surveyed have a gross revenue loss of 100 percent for the incident period when compared to last year and more than 1,000 businesses suffered severe economic damage.

Source: N.Y. Governor’s Office