While the Hudson Valley suffered significant damage from Hurricane Sandy, many businesses in the region are choosing to forgo low interest loans that could help them rebuild.
The U.S. Small Business Administration (SBA) Office of Disaster Assistance revealed that only six businesses in Westchester and Rockland counties have had loan applications approved. No businesses have had loans approved in Orange County.
Businesses can apply for Business Physical Disaster Loans, which are loans to repair or replace damaged property, or Economic Injury Disaster Loans, which are loans to help businesses meet financial obligations that cannot be met due to disaster. Businesses can receive up to $2 million.
Depending on available credit, interest rates range from 3 percent to 6 percent.
Over 5,900 businesses in New York state have applied for loans in the wake of Sandy. The deadline to apply for SBA loans was extended to Feb. 27.
Overall, the SBA has approved more than 11,000 loans for about $806 million.
John Ravitz, executive vice president of The Business Council of Westchester, said he thinks businesses suffered interruption versus physical damage, and that the lesson of Sandy was to have business continuity plans in place.
“We were alerting businesses to pay attention and have an updated plan in place,” Ravitz said. “You have to drill the plan. It”™s very important for employees that senior management be proactive.”
Ravitz said that the storm was a wake-up call to businesses.
“Denial is the biggest obstacle,” Ravitz said. “Businesses don”™t think they will get knocked out and then people can”™t get into their offices.”
Laurence Gottlieb, director of economic development for Westchester County, said that he thinks many businesses just didn”™t want the burden of taking out a loan.
“They wanted cash similar to what homeowners get,” Gottlieb said. “Government resources after a natural disaster are often as difficult as the intensity of the storm itself. It”™s not for lack of trying; the SBA was constantly communicating with business groups and local chambers.”
Westchester”™s affluence also helps small businesses, as many business owners have friends and family that they can go to for assistance.
“That”™s very different from other parts of the country that don”™t have those resources to tap into,” said Gottlieb. “There”™s a higher level of financial resiliency in this region.”
The Federal Emergency Management Agency (FEMA) said that 5,643 people in Westchester have registered with FEMA, with 3,227 Rockland residents registering. Orange County had 1,119 residents registering. The deadline to register is Feb. 27.
Overall, more than 266,000 people have registered with FEMA for help or information, with more than $768 million approved for housing assistance.
Overall, the SBA has issued 40 loans to homeowners and renters in Westchester for $1.57 million and 49 homeowners and renters in Rockland for $2.6 million. Ten homeowners and renters were approved in Orange County for $205,000.
County Executive Robert P. Astorino was in Albany last week to make sure Westchester gets its share of federal and state funding. The county suffered $69 million in damage, including $12.5 million to Rye Playland.
In January, Congress passed a $50.5 billion relief package for Sandy aid. New York City will receive $1.8 billion, with the rest of the state receiving $1.7 billion, to be divided up by Gov. Andrew M. Cuomo.
