Small business grant program expanded

Real Estate Weekly, Sept 4, 2002

Empire State Development Chairman Charles A. Gargano and Deputy Mayor for Economic Development Daniel L. Doctoroff announced that the Business Recovery Grant Program, a jointly administered state and city small business grant initiative, will be expanded to provide businesses south of 14th Street with larger grants that are initially expected to total as much as $150 million.

The increased compensation for economic loss resulting from the terrorist attacks could provide as much as $150 million in additional support to the estimated 8,000 businesses that have already received grants and will be eligible for the increased grants. To date, the jointly administered state and city program has provided 8,785 businesses with more than $242 million. New grant applicants will also be eligible for the larger grants.

"This increased funding will provide another important and much deserved boost to small business owners throughout Lower Manhattan," said Gargano. "Keeping our small businesses healthy and strong is a key component of our comprehensive effort to renew, rebuild and revitalize Lower Manhattan. We appreciate the ongoing support of President Bush, Housing Secretary Mel Martinez and our Congressional delegation as we work together to help New York City recover from the devastating events of Sept 11."

"The health of our small businesses is critical to the rebuilding of Lower Manhattan," said Doctoroff. "This increased compensation offers important help to small businesses as they recover and rebuild their businesses. I want to thank President Bush, HUD, and the Congressional delegation for their support of Lower Manhattan's small businesses."

These funds will come from the U.S. Department of Housing and Urban Development through the Lower Manhattan Development Corporation and will be subject to a partial action plan to be made available very shortly.

Under the revised program guidelines, business owners will be eligible for the following amounts of compensation based on their location, not to exceed their actual economic loss as a result of Sept. 11:

* Businesses located in the Restricted Zone will be eligible for 25 days of lost revenue, up from 10, capped at a maximum of $300,000. The Restricted Zone is bordered by Broadway to the East, the Hudson River to the West, Chambers Street to the North and Rector Street to the South

* Businesses located South of Canal, but not in the Restricted Zone, will be eligible for 7 days of lost revenue, up from 5, capped at a maximum of $150,000.

* Businesses located between Canal and Houston will be eligible for 5 days of lost revenue, up from 3, capped at a maximum of $100,000. Businesses located between 14th Street and Houston will be eligible for 3 days of lost revenue, up from 2 days, capped at a maximum of $50,000.

* The maximum dollar amounts for the four areas remain unchanged from when the Business Recovery Grant program was first announced. Businesses that have already received the maximum grant will not be eligible for any increase.

Empire State Development and the City's Economic Development Corporation will notify all businesses and not for profits that have already received grants and are eligible for the increased grant amount. The state and city will also continue to encourage all businesses and not for profits who have not yet applied for the Business Recovery Grant to do so. Applications for the Business Recovery Grant Program can be submitted until Dec. 31, 2002.

All businesses and not for profits south of 14th Street that were operational on Sept. 11 are eligible for the grant program based on the tax returns for the business' fiscal year ending prior to Sept. 11, 2001. ESD and EDC determine the grant amount by calculating the lost revenue based on a 250-workday year.

City Economic Development Corporation President Andrew M. Alper said, "Together the City and the State will continue to reach out to Lower Manhattan businesses that have not yet applied for the assistance programs. Every small business owner should take advantage of this available and increased assistance to help them rebuild their businesses."

LMDC President Lou Tomson said, "This marks a significant step toward reviving the economy of the downtown area and preserving the diversity of businesses that thrive in Lower Manhattan. Small businesses maintain a unique role in the communities affected by Sept. 11, and their continued vitality is essential to attracting residents, tourists, and other commercial interests. This increased aid will help accelerate the revitalization of Lower Manhattan."

U.S. Representative Jerrold Nadler, who represents the area affected, in Congress, said, "In the immediate aftermath of the 9/11 attacks, I focused my many of my efforts in Congress on two constituencies impacted by the attacks--residents and small businesses. Getting money allocated for small business grants was a top priority, and I was proud to help lead the efforts in