WTC Records Folder 0139 label, 2001

NYC 9/11 Public Portal Document NOV 30 2001 5:53 PM FR EDCIECO&ENGY ANALYS 618 8888 TO 7533251518877037 P.e7

structurally sound, suffered extensive damage to interior property. In buildings where only the windows were blown out, ventilation and computer systems have been ruined by the dust.

Economic injury impacts include all businesses located South of 14`s Street in lower Manhattan which suffered at least one week of business interuption and lost revenue while the area was closed to all traffic. Portions of this area remained dosed for even longer, until utilities and acecss were restored. But it doesn't end there. The ccouomic damage from the attacks has reached businesses all across the City, as noted above, and continues to multiply, as each injured business impacts several more that supplied or depended upon it

The Small Business Administration offers Iow cost loans for physical damage and economic injury, and extended the eligible zone for economic injury well beyond the boundaries of New York City. To expedite the anticipated assistance to small business recovery that the SBA loans would provide, ESD partnered with the City of New York to capitalize 2 loan loss reserve fund. The fund enables private sector banks and community-based lenders to make shore-tetra bridge loans available to businesses while they await SBA approval. ESD committed $25 million to capitalize this fund. Additionally, the New York City Economic Development Corporation (EDC) has also offered a small business grant program wed to award of SBA loans.

Unfortunately, many small businesses fear that the economic impacts of the disaster are so grave that they cannot ask further debt, without some assurance of recovery in their neighborhood and industry. A surprisingly small number of businesses have applied, and of those who have, SBA has approved loans for only 46%, denying lost-cost credit for 54% of injured applicants. Most small businesses are left unassisted by this program.

As business of all sizes, but particularly small business has been telling us, they need grants for working capital in order to recover. ESD will focus damage compensation assistance on providing viable businesses with enough cash to resume operations, targeting the businesses of lower Manhattan first, to rebuild a vital business core. ESD damage compensation programs already in progress include: • Bridge Loan Program (already malting loans) — ESD provided $25 million, in partnership with New York City, for loan guarantees for banks and other community-based lenders offering bridge Loans to businesses applying for SBA economic injury or physical disaster loans. • WTC Retail Recovery Grant Program (already making awards) — offers three days lost business revenue, capped at $10,000, to retail and personal service firms with fewer than 500 employees located in lower Manhattan (south of Houston Street) on September 11, and continuing in business in NYC. This grant program allocates $20 million and anticipates making approximately 3,300 awards averaging $6,500 each. • NYC Lower Manhattan Grant Program (already making awards) — managed by the NYC Economic Development Corp (EDC), offers grants to small, non-retail businesses, capped at 310,000, and tied to approval of SBA loans. Grants are calculated as a percentage of SBA loan.

ESD is currently developing additional responses to damage compensation needs, along the tines of the following examples: • Physical Damage Compensation Grant Program (undet consideration) — could offer grand of $10,000 plus three days lost revenue, possibly capped at $100,000 to non-retail businesses that have suffered physical damage. and continue to do business in New York. The three days lost

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