U.S. Senator Daniel K. Akaka (D-Hawaii) joined a bipartisan coalition of Senators in introducing emergency legislation to strengthen and expand access to Small Business Administration loans and management counseling for America's 25 million small businesses in the aftermath of the September 11, 2001, terrorist attacks and their adverse impact on our nation's economy. Senator Akaka is a sponsor of the American Small Business Emergency Relief Act of 2001, introduced by Senator John Kerry (D-MA) and Christopher Bond (R-MO), chairman and ranking member, respectively, on the Senate Committee on Small Business.
"Hawaii's small businesses have experienced a severe economic aftershock since the tragic attacks on New York and Washington," Akaka said. "Our hospitality industry has been hit particularly hard by the significant decrease in business and leisure travelers who are staying close to home. Airlines are having to adjust to the reduced number of travelers, while hotels are dealing with low occupancy rates due to the cancellation or postponement of planned trips to Hawaii. This in turn is hurting restaurants, shops, tour companies, travel agents, and workers in these businesses throughout the islands"
"While I am confident that Hawaii's visitor industry can withstand this downturn, action is necessary to help preserve existing jobs and support the economy during this difficult time. Further job reductions will have significant spillover effects on the economy."
Since Hawaii's airports reopened, domestic visitor arrivals in the state have decreased by 31 percent compared to the same time period last year. Comparing international arrivals during the period from September 15-25 for 2000 and 2001, reveals a 65 percent decrease in visitors. Restaurants, hospitality services, shopping centers, and other tourism-related businesses are also being affected by the lack of visitors. The Hawaii Department of Labor and Industrial Relations reports that unemployment claims for the week of September 17 were double the weekly average. It is estimated that 80 percent of these claims are tourism related.
The American Small Business Emergency Relief Act provides assistance to small businesses in three different categories: businesses directly affected by the terrorist attacks or closed for security reasons; businesses nationwide directly or indirectly affected because they are a supplier, service provider or complementary industry to an affected industry; and small businesses in need of capital and investment financing, procurement assistance, or management counseling as a result of the economic impact of September 11.
The bill aims to alleviate the economic strain on Hawaii's small businesses by providing crucial access to credit. By expanding the application eligibility of the Small Business Administration's Disaster Loan programs to event-based instead of location-based criteria, small businesses not physically damaged or destroyed or in the vicinity of such businesses, but directly or indirectly affected because they are a supplier, service provider or complementary industry to any affected industry, especially the financial, hospitality, travel and tour industries, or who are dependent upon the business of a closed or suspended business or sector, are eligible for assistance.
Assistance to directly or indirectly affected businesses complementary to any affected industry would help Hawaii businesses which provide hospitality or travel services. The measure would also create incentives for small businesses to utilize the non-disaster relief loan programs. The incentives would encourage wary individuals and companies to borrow and lend to establish and expand small businesses in the current economic environment.
"It is imperative that Congress and the President include small business relief in any economic stimulus and post-disaster recovery legislation we consider to encourage growth and restore public confidence in our nation's economy," Akaka said.
