FOR IMMEDIATE RELEASE: September 15, 2011
SCHUMER PUSHES TO EXPEDITE $5 MILLION FEDERAL LOAN FOR HARRIMAN BUSINESS DAMAGED IN IRENE’S FLOODING; WITHOUT HELP SOON, COMPANY COULD BE FORCED TO LAY OFF HUNDREDS
Today, U.S. Senator Charles E. Schumer called on the Small Business Administration (SBA) to expedite the approval of a $5 million federal emergency loan to Superior Pack Group in Harriman, so that the company is not forced to lay off hundreds of employees. Tropical storm Irene ripped a hole through the company’s packaging plant and damaged its equipment, completely stopping its operations. Superior Pack Group, which provides packaging, fulfillment, warehousing and inventory management services for major candy and confectionary companies, needs to finance their repairs, moving, and operating costs as quickly as possible so that it can resume work in the next several weeks. Company officials have told Schumer’s office that unless they receive the emergency loan and get back up and running in two to three weeks, the company could be forced to lay off workers, because customers cannot afford to wait for their products to be packaged and delivered and stores cannot afford to wait while their shelves are empty.
“Irene has devastated businesses throughout the state, and Superior Pack was no exception,” said Schumer. “The flooding literally ripped a hole through this company; we can’t let it rip a hole through our local economy as well. The Small Business Administration needs to step up, cut the red tape, and deliver this loan as quickly as possible. That way, these Orange County employees can stay on the job, and Superior Pack can return to being the strong company it was before the flooding hit.”
In addition to pushing for the SBA loan, Schumer’s office is working with Superior Pack to secure funding from Chase Bank and the New York Business Development Corporation.
The text of Senator Schumer’s letter to Administrator Mills appears below:
Dear Administrator Mills,
I write today to urge you to expedite a crucial financing package under the Small Business Administration’s Disaster Assistance program for Superior Pack Group of Cornwall, NY. Superior Pack Group is a major employer in the mid-Hudson Valley region supplying a full range of packing and shipping services to businesses across New York and the country. The jobs of over 500 hardworking men and women are at risk and your agency has the tools to help them through this extraordinary circumstance.
As Hurricane Irene swept across large swaths of my state, Superior’s facility in Cornwall, which is located near a major creek, sustained significant damage, disabling the company’s ability to fully maintain day-to-day operations. A large hole was ripped into the side of the facility by swelling river waters, destroying crucial infrastructure in its path and forcing the company to remove as much material from the building as possible. It is my understanding that Superior has a very small window of about three weeks to re-start their operations before they face the very real possibility of losing major clients. Therefore, I request that you work with Superior to expedite their application and put the needed financing in place to aid this company in their time of need.
If you have any questions, please contact me or a member of my staff.
Charles E. Schumer