WASHINGTON (January 17, 2002) -- President Bush has signed into law an
appropriations bill adding $320 million in loan capacity to the U.S.
Small Business Administration's disaster lending effort on behalf of
businesses in New York and Northern Virginia that suffered losses in the
aftermath of the World Trade Center and Pentagon attacks of September
The additional funds raised the total disaster loan pool available to
help these businesses to $600 million.
"Our legislative partners deserve praise for working so hard to craft
this package that will help business owners who suffered such great
losses in the aftermath of the September 11th attacks," said SBA
Administrator Hector V. Barreto. "This funding will contribute greatly
to the economic revival of these communities."
The law expands the SBA disaster loan program as follows:
-- The maximum disaster loan (physical and/or economic injury) amount is
increased from $1.5 million to $10 million for businesses located in the
declared disaster areas of New York, Virginia and contiguous counties;
-- Small non-profit institutions (churches, YMCA, schools, etc.) located
in the declared disaster areas of New York, Virginia and contiguous
counties are now eligible for Economic Injury Disaster Loans (EIDLs);
-- Small non-depository financial and insurance firms located in the
same declared disaster areas (such as companies engaged in financial
transactions processing, securities and commodities exchange, direct
life insurance carriers) are now eligible for EIDLs;
-- Following SBA's issuance of an EIDL to small businesses in the
declared areas, payments of principal and interest on those loans will
be deferred for two years, and no interest will accrue during that
The application deadline for physical damage disaster loans (New York
City and contiguous counties) has been extended to March 11, 2002.
Small businesses in all the declared disaster areas have until June 11,
2002, to submit the EIDL application.
To find out more about the SBA's disaster assistance program,
visit the Web site at www.sba.gov/disaster.