NYC 9/11 Public Portal Document
Overview of Economic Stabilization and Recovery Program
The Economic Development Corporation requests $1 billion in funds to support business
retention and relocation efforts and legislative authority to reduce the cost of replacing
the lost and damaged office space.
SBA Direct Loans for Physical and Economic Damage: Guidelines to be relaxed to
expand eligibility and provide enhanced benefits. Applications now being accepted
and processed
Revolving Bridge Loans: To fund companies awaiting SBA loan approval and funds
disbursement. To be offered through banks backed by loan guarantee fund.
Government will establish guarantee fund to be matched by banks on a 5:1 basis. $50
million in government support would leverage as much as $250 million in private
financing on a revolving basis.
Direct Business Assistance: Up to $1 billion in assistance to offset increased costs for
companies forced to relocate, together with limited funding for companies moving
into Downtown Manhattan.
• Tax Exempt Bonding Authority: $15 billion triple tax-exempt bonding authority for
the repair/reconstruction of up to 25 million square feet of office space. This will
significantly reduce interest costs and thereby reduce construction and occupancy
expenses.
Federal Guarantee of Reconstruction Bonds: Federal guarantee of reconstruction
bonds for buildings to be constructed in Downtown Manhattan. This will further
enhance the availability of private credit for mortgage financing and reduce interest
costs.
Budget Stabilization Assistance
The City of New York requests funding of $3.6 billion in transitional aid over ten years
to replace lost tax revenue. Until the WTC can be rebuilt the City will suffer annual
losses in property taxes or Payments in Lieu of Tax. In addition, tax revenue will be
immediately reduced due to the dislocation of an estimated 44,000 workers and their
businesses as well as from the decline in tourism.
The City requests $583 million in City fiscal year 2002 and City fiscal year 2003. The
amount will phase down each year through 2011.
NYC-WTC 000136433
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