NYC 9/11 Public Portal Document
Q&A 10/16/01
7) FINANCIAL ASSISTANCE
Q: Is there financial assistance available for affected businesses?
A: Several entities are handling the financial assistance related to the recovery:
1) Citv/State Disaster Loans (the WTC Disaster Recovery Loan Program - more details
provided below).
2) The U.S. Small Business Administration (SBAl offers a disaster loan program, and has
representatives taking business information and distributing applications at 110 Maiden Lane
(between Pearl and Water) and 633 3”* Avenue (between 40* and 41“). The SBA (1-800-
659-2955) has information on their website at www.sba.gov/disaster/newvorkfires.html
about financial assistance for disaster recovery. (More details on services below.)
3) The Federal Emergency Management Agency (FEMA1 (1-800-462-9029) has a number of
loans and services (More details on services below.)
4) The New York City Investment Fund wiU be posting information on its website about private
sector sources at www.nvcif.org.
5)
City/State Disaster Loans
The City is in the process of setting up the WTC Disaster Recovery Loan Program which will
provide bridge loans of up to $100,000 within three days of application to businesses and non
profits that have suffered economic injury or physical damage. The purpose of these loans is to
provide immediate relief to businesses that are waiting for their SBA loans to be processed.
Summary of structure of WTC Recovery Bridge Loans:
Interest rate: Most banks offer 3.5 percent for the first 6 months, some banks offer this
Rate for a year. After that the rate charged on the loan rise to prime.
Terms of
the Loan: Ranges firom 1 to 5 years.
Fees: Most banks have eliminated closing and prepayment fees.
Requirements: It seems that most banks do not require that the company be in business
for two years. One bank requires a year’s financial statement for loans
over $50,000. Currently one bank has a 2-year in business requirement.
Deferred Interest: Many banks defer interest payments for the first year.
THIS MAY CHANGE AS THE BANKS COMPETE OR GAIN BETTER COMFORT WITH
SBA REQUIREMENTS.
Banks involved in the program will include:
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