Archives of the Mayor's Press Office

Mayor Rudolph W. Giuliani and Governor George E. Pataki announced today that the City and State of New York, working with private banking institutions, have created an emergency loan program to accelerate financial assistance for small and medium-sized businesses affected by the attack on the World Trade Center.

"It is imperative that we begin to rebuild the Lower Manhattan business community as soon as possible," said Mayor Giuliani. "This program will expedite the efforts of the small and mid-sized business that are so vital to our overall economy to recover from the tragedy of September 11 and get on with the task of rebuilding their futures and the future of New York City."

"For decades, New York has been the undisputed financial capital of the world, in no small part because of the hard work and contributions of the small businessmen and women of Lower Manhattan," said Governor Pataki. "Just as we will rely on their diligence and entrepreneurial abilities to help New York come back even stronger, we recognize the need to extend a helping hand and provide New York's business owners with this important assistance."

The WTC Disaster Recovery Loan Program will provide bridge loans of up to $100,000 within three days of application to businesses and not-for-profit organizations that have suffered economic injury or physical damage. The Program will allow affected businesses to obtain funds while their applications for Small Business Administration (SBA) Disaster Relief are being reviewed. The interest rate on the WTC bridge loans will be discounted from standard bank rates. The New York City Economic Development Corporation (EDC) and the Empire State Development Corporation (ESDC) are jointly administering the loan program.

"This emergency loan program will help businesses to move more quickly to recover and rebuild," said Robert M. Harding, Deputy Mayor for Economic Development and Finance. "We commend the participating lending institutions for their involvement in this program and for their confidence in the future of New York City."

The loans may be used to provide working capital, to purchase machinery and equipment or for rehabilitation of facilities. Participating banks will be permitted to use their own application and lending criteria. The WTC Loan Program supplements previously established public and private small business lending programs and disaster relief efforts.

"These loans will play a crucial role in helping the small businesses adversely affected by the horrific events of September 11th," said Charles A. Gargano, Chairman of the Empire State Development Corporation. "We will come through this disaster even stronger than we were before September 11th because of important efforts like this to provide New York business owners with the access to immediate capital they need to start their efforts to rebuild."

The City and State will equally fund the Program by establishing a 20 percent guaranty fund of $50 million. Under the Program, participating banks will establish a pool of up to $250 million to make bridge loans to businesses as they apply for SBA assistance. When the SBA loans are approved, the proceeds of the bridge loans will be returned to the WTC Loan Program fund to guarantee additional bank lending.

EDC President Michael G. Carey said, "The economic future of Lower Manhattan is on the line and we're proud that these leading banking institutions are stepping up to assist in this important effort."

Participating lending institutions include: JP Morgan Chase, Fleet National Bank, Citibank NA, HSBC Bank USA, Bank of New York, and Banco Popular. Other banks are expected to join the Program in the coming days.

For more information about the WTC Disaster Recovery Loan Program, and to apply for assistance, business owners may visit the branch office of any participating bank. Additional information on this Program and other small and mid-sized business assistance is available on EDC's website at NewYorkBiz.com and the ESDC website at NYLovesBiz.com.