Businesses apply for disaster relief loans
Gannett News Service
WASHINGTON — Nearly 4,000 companies have requested applications for federal disaster-relief loans in the program's first week to get them out of an economic hole caused by the Sept. 11 terrorist attacks.
Small Business Administration: Travel Industry Association of America: American Society of Travel Agencies:
In an unprecedented move, the Small Business Administration is offering travel agencies and other companies these low-interest loans nationwide rather than limiting them to a specific region hit by a hurricane or earthquake. The loans especially will aid small hotels, travel agencies and motor-coach companies hurt by a drop in tourism, said Cathy Keefe, a spokeswoman for the Travel Industry Association of America.
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"These are week-to-week, month-to-month businesses," she said. "Many owners haven't drawn a salary since Sept. 11."
The SBA has mailed out 3,900 applications since Monday, said spokesman Mike Stammler. The SBA's four regional offices each have received 500 to 1,700 calls daily from companies about the loans, he said.
In Hawai'i, the loan program has generated some interest but just how much is not clear yet.
Andrew Poepoe, SBA's Hawai'i director, said local small businesses are being referred to the SBA's office in Sacramento, Calif., for loan applications.
"We are not sure how much interest will be generated in Hawai'i because this disaster loan program has some specific points that have to be met first," Poepoe said.
Companies, which have three months to apply for these loans, must show they supplied services to businesses disrupted by terrorist attacks and have been substantially harmed.
The SBA already has approved $64 million in loans to businesses and individuals in the New York region since Sept. 11, Stammler said. The SBA has received $400 million so far to pay for these disaster-relief loans and all of the approved applications should be covered, he said.
