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FOR
IMMEDIATE RELEASE July 19, 2007
Contact: Sarah Krauss
(212) 669-4193; (917) 541-0936
Release #: 035-2007
Public Advocate Gotbaum Calls for Immediate Low-Interest Loans to Support Businesses Hurt by the Midtown Explosion
- Thousands of workers, hundreds of businesses impacted by disaster, millions of dollars at stake -
MANHATTAN – Public Advocate Betsy Gotbaum today called on the city to offer immediate grants and low interest loans to small businesses closed by yesterday’s midtown explosion. Businesses and workers located in the “Frozen Zone,” the area between 40th and 43rd Streets between Third and Park Avenues, are expected to lose millions of dollars in business and may not have enough insurance to cover damages and lost profits. The “Frozen Zone” will be closed for an undetermined period of time due to asbestos exposure.
City assistance is not uncommon in cases where a disaster forces a number of businesses to close. After last year’s blackout in Queens, the New York City Department of Small Business Services (SBS) offered a new zero-percent-interest loan of up to $10,000 to affected businesses. Public Advocate Gotbaum called on city agencies to offer similar resources to businesses and workers impacted by yesterday’s disaster.
Public Advocate Betsy Gotbaum said, “We want to take every precaution to make sure New Yorkers are safe. But there’s no reason why businesses and workers should punished because an 80 year-old pipe burst. The city should support small businesses in this time of need and help them get back to business as usual.”
When the blackout occurred in Queens in 2006, SBS created a new interest-free loan for affected businesses. Owners would still be required to have businesses within the “Frozen Zone,” and provide tax returns and a utility bill in order to apply. The specific terms and interest-only period of the loan could be determined by SBS. The application process should be as simple and expedited as possible.
The 83-year-old pipe that ruptured had been insulated with asbestos. The explosion sprayed some of that asbestos into the area, creating potential danger to workers and residents. The city Office of Emergency Management (OEM) has tested the air, dust and debris in the area. While the air tested negative for asbestos contamination, some asbestos did settle on debris. OEM will continue to test the air and soil in days to come.
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