12.08.06

Schumer Urges Locals Hit By October Snowstorm To Apply For Federal SBA Disaster Assistance Loans

Disaster Loans Can Be Used To Rebuild And Replace Damaged Property And Sustain Financial Activity After A Disaster

U.S. Senator Charles E. Schumer today urged New York State businesses, nonprofits, homeowners and renters to apply now for Small Business Association (SBA) disaster loans. The deadline to apply for Physical Loss Loans (PL) is December 26, 2006 and can be used for permanent rebuilding and replacement of property for businesses, nonprofits, homeowners and renters affected by the snowstorm. The deadline to apply for the Economic Injury Disaster Loans (EID) is July 24, 2007. EID loans provide the necessary working capital for businesses and nonprofits until normal operations resume after a disaster. The counties of Erie, Genesee, Niagara and Orleans are eligible for both types of loans, while Cattaraugus, Chautauqua, Livingston, Monroe and Wyoming Counties are eligible only for EID loans. These Western New York and Finger Lakes communities were hit hard by snow and storms early this fall, said Schumer. The time to apply for these loans is running out, so Buffalo residents and businesses must take advantage of the opportunity to use this money to get back on their feet in the wake of so much unexpected damage. PD loans are for permanent rebuilding and replacement of uninsured or underinsured disasterdamaged, privatelyowned real and/or personal property. Repair or replacement of real property, machinery, equipment, fixtures, inventory and leasehold improvements may be included in the loan. In addition, disaster loans to repair or replace real property or leasehold improvements may be increased by as much as 20 percent to protect the damaged real property against possible future disasters of the same type. These loans are available to businesses of all sizes, non profit organizations, homeowners and renters in Erie, Genesee, Niagara and Orleans Counties.

EID loans provide necessary working capital until normal operations resume after a disaster. An EID loan can help a business meet the necessary financial obligations that an organization could have met had the disaster not occurred. They provide relief from economic injury caused directly by the disaster so that a business may maintain a reasonable working capital position during the period affected by the disaster. The law restricts economic injury disaster loans to small businesses only. Small businesses in Erie, Genesee, Niagara, Orleans, Cattaraugus, Chautauqua, Livingston, Monroe and Wyoming Counties are eligible for EID loans.

Eligible businesses and nonprofits should call 18006592955 or 18778339 for the hearing impaired, where SBA disaster loan staff will be available to provide personal assistance with applications and to answer questions. Those interested can call or visit the SBA website at www.sba.gov/services/disasterassistance to obtain an application. Completed applications should be mailed to:

USSBA
Processing and disbursement center
14925 Kingsport rd
Fort worth TX 76115

On October 15, Schumer visited Buffalo immediately following the snowstorm to survey the damage. He successfully urged the President to make a Major Disaster Declaration which released millions of dollars in federal aid for storm victims. Following the storms Schumer was in close contact with FEMA and the SBA to ensure that aid would be available to those whose homes and businesses were damaged.



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