Program Will Provide Low-Interest Loans of Up to $25,000
The New York Bankers Association (NYBA) and the
New York Business Development Corporation (NYBDC) have agreed to establish a
$10 million small business emergency loan fund to provide immediate financial
assistance for businesses impacted by Storm Sandy.
Under the fund, businesses
will be able to apply for loans of up to $25,000 immediately by going to www.esd.ny.govor by calling 1-855-NYS-SANDY.
“New York’s banks are stepping up to help our state’s small businesses rebuild and restart in the aftermath of Hurricane Sandy,” Governor Cuomo said.
“New York’s banks are stepping up to help our state’s small businesses rebuild and restart in the aftermath of Hurricane Sandy,” Governor Cuomo said.
“This loan program will help those businesses
who were hit hardest by the storm get the resources they need to repair
immediately, allowing them to continue to provide jobs to our communities and
strength to our economy. I applaud the New York Bankers Association for
providing relief to these businesses and joining the growing efforts by the
private sector to help all New Yorkers recover.”
Michael P. Smith, President & CEO, New York Bankers Association stated, “The banking industry understands that the quick recovery of small businesses will be key to the rebuilding of our neighborhoods. We are eager to help in this critical effort so that New York’s small business owners can get back to work, and back to providing goods and services to their communities.”
The emergency loan program will provide low-interest loans of up to $25,000 to small businesses in an expedited manner to help in the recovery efforts.
The New York Business Development Corporation
will manage and operate the loan program in coordination with Empire State
Development (ESD).
Through the program, small businesses in affected communities will be eligible to receive loans of up to $25,000 that will be interest and payment-free for the first six months and then at one percent interest for the following two years.
Eligible businesses can use the funding to cover
the costs of replacement and repairs to facilities or equipment or as working
capital needed to restart or continue business operations.
The emergency loan program is for independently owned and operated businesses that have fewer than 100 employees and are located in the counties designated as disaster areas: Orange, Putnam, Rockland, Sullivan, Ulster, Westchester, Nassau, Suffolk, and the five boroughs of New York City.
The emergency loan program is for independently owned and operated businesses that have fewer than 100 employees and are located in the counties designated as disaster areas: Orange, Putnam, Rockland, Sullivan, Ulster, Westchester, Nassau, Suffolk, and the five boroughs of New York City.
To be eligible to receive funding through the program, companies must have filed 2011 business tax returns and have experienced direct damage or economic hardship as a result of Sandy.
Applications will be available within the week
and businesses are expected to begin to receive funding five to seven days
after submitting a complete application and the required documentation.
"The recovery of our communities depends on
the ability of their local businesses to have the resources they need to get
back to business. Under the leadership of Governor Cuomo, the state is
providing immediate and direct assistance to help those who need it most during
these difficult times," said Empire State Development President, CEO &
Commissioner Kenneth Adams.
Chris Giamo, Regional President for New York and Northern New Jersey, TD Bank noted, "TD Bank is proud to lend our support to this important effort which will assist in restoring and supporting businesses as Hurricane Sandy recovery moves forward. Our thoughts are with those who have been affected by this natural disaster and we look forward to seeing the results of this investment in the greater New York Community.”
Created in 1955, NYBDC is a consortium of banks committed to supporting economic development and job growth opportunities in New York State by providing government guaranteed and conventional loans to small businesses at all stages of development.
NYBDC works with its member banks to provide
creative, responsive and cost effective financing solutions when a conventional
alternative is not available through long-term working capital, equipment, and
real estate loans to a variety of businesses located in New York State, either
in participation with, or as an adjunct to, the banking industry.
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