Schumer Reveals: $200 Million in Second Wave of Disaster Aid Set to be Released by Congress - Focus Will be on Economic Rebuilding and Development, Schumer Will Fight for Southern Tier's Fair Share

Press Release

Today, U.S. Senator Charles E. Schumer announced that Congress is set to sign off on $200 million in Economic Development Administration funding to help finance key economic growth projects in counties hammered by natural disasters like Hurricane Irene and Lee. Schumer helped author the provision in last year's disaster aid bill that could provide critical funding for projects throughout Binghamton and the Southern Tier. The funding was being held up by the House and Senate appropriations committees, who had to approve general guidelines for the use of the funding. Following a push from Schumer, the committees are preparing to issue the guidelines, which will make the funds eligible for key projects in areas looking to rebuild their local economy after the storm. The EDA money could flow to a variety of projects in Binghamton, including a new small business loan fund and new shovel-ready sites for businesses and economic development.

"This much-needed second wave of flood rebuilding funds will help get the Southern Tier economy moving again," said Schumer. "Binghamton and the entire Southern Tier were hammered by some of the worst disasters in history last year, and deserve a good chunk of these federal dollars. From developing shovel-ready sites for business development to the establishment of a low interest loan fund, Binghamton has great projects that are ready to roll with these federal investments. I'm going to work hard to make sure the Southern Tier gets its fair share of these funds, and that we continue rebuilding key businesses and infrastructure that are essential to the economic recovery from the storm."

"Broome County was devastated by the second major flood in five years. I personally sat through over 120 home buyouts in 2006, and when we thought the worst was behind us, we were hit again in September, 2011. Broome County is hurting," said Broome County Executive Debbie Preston. "EDA Disaster Funding will be a shot in the arm for Broome County and will help promote growth throughout the region. I applaud Senator Schumer for fighting for these funds for New York and I implore the EDA to allocate funding for projects that will help revitalize Broome County. After two horrendous Natural Disasters we need help and we need it now."

Schumer toured the former STOW manufacturing site that could be revitalized into a new shovel-ready site for business development with Broome County Executive Debbie Preston. Schumer helped pass legislation that included billions of dollars in disaster funding, which would help New Yorkers recover from Tropical Storms Irene and Lee. That Fiscal Year 2012 Appropriations "mini-bus" legislation included $200 million appropriated for the EDA to distribute to disaster-ridden counties. The EDA will be able to use this funding to provide financial resources and technical assistance to help rebuild economic development and provide grants to build new infrastructure, like basic utilities, research facilities, and businesses that foster economic development to retain or attract jobs to the region. However, the House and Senate Appropriations Committees must approve EDA's planned uses for the funds before they can be released to the EDA and applied to disaster recovery projects. The committee does not review specific projects, but rather signs-off on the EDA's planned general use of the funding. The committees had not moved forward with the guidelines for weeks, but after a push from Schumer the approval process is underway and the funds should be made available in the next two weeks.

Congress recently passed a series of appropriations bills, which will provide approximately $2.6 billion in disaster recovery funds to help communities across the country. Of these funds, Congress provided the EDA with $200 million in competitive disaster recovery funding. EDA's spending plan for allocating the disaster funds is now in the Congressional approval process, but had been bottled up in serious delays.

Schumer noted that the EDA emergency funds would be a perfect match for a number of outstanding Broome County projects that could help the region continue its recovery. Local officials plan to pursue the establishment of a low or no interest loan program for small businesses impacted by recent flooding. Such a program could help small businesses make investments, restore inventory stock and meet other needs recovery from the recent flooding entails. The former STOW Manufacturing Co. site, a Brownfield, currently sits vacant and in disrepair. This desirable location, with easy access to major thoroughfares requires demolition and cleanup to make this site conductive to new development and assist with the revitalization of the Brandywine corridor. Schumer also pointed to two hundred acres of unused at the Greater Binghamton Airport that the county hopes to develop for new businesses could receive EDA funds to help make the site suitable to new companies.

The EDA plays a critical "second responder role" in addition to FEMA, in helping local governments weather the storm and provide emergency funding for repairs. Schumer's push to secure a $200 million lifeline in the FY12 Appropriations "mini-bus" legislation funds a variety of EDA projects in the wake of these major disasters, but only once the funding is finalized and released. Specifically, EDA can be tasked with the following projects in the wake of a major disaster:

1.) Strategic Planning: EDA offers financial resources and technical assistance to help develop and enhance economic development plans following a disaster. This is achieved through the funding of disaster recovery plans, strategies, and funding for disaster recovery coordinators.

2.) Infrastructure Development: EDA offers grant funds to build new infrastructure (e.g., business incubators, technology parks, research facilities, basic utilities such as water treatment) that foster economic development to retain or attract jobs to the region.

3.) Capital for Alternative Financing: Through EDA's Revolving Loan Fund (RLF) program, non-profit and governmental entities can apply to establish an RLF which in turn makes below market-rate loans to businesses to help recovery

"Broome County has several innovative and important projects just waiting to happen," said Schumer. "These funds could be the seeds that sprout new jobs and economic growth, pushing us further down the road to recovery from Irene and Lee."

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