Lowey: SBA Approves Economic Assistance For Pelham

WASHINGTON, DC – Congresswoman Nita Lowey (D-Westchester/Rockland) praised the Small Business Administration (SBA) for approving economic injury assistance for small businesses in Pelham.  The businesses were hurt by a rock slide in December 2005.

“This is great news for small businesses in Pelham.  This assistance will provide business owners with operating funds until the businesses are able to recover from the rock slide,” said Lowey.  “For weeks, I have worked closely with the Village, local business owners and Governor Pataki’s office to make sure the SBA would approve this assistance and our efforts bore fruit today.”

The rock slide occurred after midnight on December 20, 2005.  Although no one was hurt, it caused serious financial losses to sixteen businesses on 5th Avenue, including the complete displacement of eight.  Congresswoman Lowey has been working with the Village and New York State to ensure the Village would be granted an economic injury designation for the affected businesses.  This declaration will allow the business owners to apply for low-interest SBA loans.  

On January 6, Lowey met with local business owners and officials to discuss the process by which the Village could apply for federal assistance.  Lowey assisted the Village in compiling the information for the application of assistance and wrote to Governor George Pataki in support of the Village’s petition.  On February 17th, a staff member of Congresswoman Lowey’s staff attended a meeting in Pelham with representatives of the State Emergency Management Office (SEMO), the SBA, Westchester County, and Service Corps of Retired Executives (SCORE) to urge quick action on this matter so that business owners could begin to receive assistance.

Last week, New York Governor George Pataki approved the designation and forwarded the Village’s petition to the SBA.  Congresswoman Lowey also wrote to Hector V. Barreto, the Administrator of the SBA, to urge quick action on the Village’s petition.  Today, the SBA granted the Village’s request for assistance.  Through December 31, 2006, eligible businesses can apply for SBA loans at an interest rate of 4%.  A temporary SBA office will soon open locally to help process applications. 

“This assistance will make a big difference in rebuilding the businesses and helping to prevent further economic loss,” said Lowey.  “Some of our business owners are already facing the harsh choice of whether or not to close down.  These low-interest loans will help keep doors open and smooth the path to recovery.  While the road to full economic recovery may be long, I'm glad that the federal government is stepping up to help that process.”