Federal Government to Provide Small Businesses in Queens and Surrounding Areas with Disaster Assistance

Federal Government to Provide Small Businesses in Queens and Surrounding Areas with Disaster Assistance

As areas of Queens, and surrounding areas, were declared eligible for disaster assistance today, Congresswoman Nydia M. Velázquez (NY-12), Ranking Democrat on the House Small Business Committee, highlighted how important this relief is for the local impacted small businesses that are struggling to recover following the power outage. Congresswoman Velázquez had called on Governor Pataki and the Small Business Administration (SBA) shortly after the onset of the power outage to make local businesses that had been adversely impacted eligible for assistance through the SBA's disaster loan program.

"This is an important step for the small businesses throughout the area that have endured economic hardship as a result of the power outage," Congresswoman Velázquez said. "SBA's disaster loans play a pivotal role in helping these small firms to recover - as well as ensuring that these local firms can achieve financial stability and future economic gains once again. For a number of these small firms, losing power for up to 10 days can result in severe economic downturns; however access to this assistance will help these entrepreneurs to remain strong and on their feet."

The recent Con Edison power outage affected hundreds of thousands of people throughout Queens - particularly the areas of Sunnyside, Woodside, Maspeth, Long Island City, Astoria and Ravenswood. Small businesses often times have little cash reserve, limited ability to raise capital, and often can only afford basic insurance; and therefore require assistance following unforeseen disasters. Among the small businesses most impacted are grocery stores, restaurants and other food service companies that rely on perishable items and clean water. A number of local firms had been left without electricity and clean water for days, jeopardizing both their short and long term financial stability. The declaration will enable local small businesses to be eligible for economic injury disaster loans (EIDL) through the SBA. These disaster loans provide access to working capital for those small firms that have suffered economic hardship as a result of the outage. The loans can help entrepreneurs cope with lost revenue by supplementing rent costs, utility and payroll obligations.

As the Ranking Democrat on the House Small Business Committee, Congresswoman Velázquez has played a pivotal role in advocating that disaster assistance be made available to these small businesses. Congresswoman Velázquez was instrumental in educating federal agencies and SBA officials about the impact the power outages had on local small firms, and why disaster assistance was so critical.

"Disaster assistance is critical to a recovery, especially one that has resulted in thousands of dollars in losses for area businesses," Congresswoman Velázquez said. "It is my hope that the small businesses here in Queens are able to access this relief, and make a full recovery following this disaster. As the lifeblood of our community, we simply cannot afford to lose the contributions and vitality they offer to our local economy."

A temporary Loan Assistance Center will be open in Commerce Bank, 31-04, Ditmars Boulevard, Astoria, New York 11105 to assist local impacted businesses. The center will open Tuesday August 1 at 10 am.

http://www.house.gov/velazquez/PressReleases/2006/pr073106.htm