“As we saw during the Queens blackout, closures for even a few days can kill businesses,” Maloney said.  “Low-interest federal loans could help avert a financial disaster for small businesses in east Midtown.”

“Many businesses will need asbestos inspections and cleanup before they can reopen and I understand that as of now, building owners are being asked to foot the bill,” Maloney added.  “SBA loans would not only help firms cope with the cost of being closed for several days, but they may also be a key factor in allowing buildings and businesses to literally open their doors.”

“Con Ed should compensate building owners and residents for cleanup costs, but until a comprehensive reimbursement plan can be worked out, federal loans could be a huge help in getting east Midtown businesses up and running.”

Congresswoman Maloney represents the 14th Congressional District of New York, which includes east Midtown.

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July 20, 2007

The Honorable Eliot Spitzer
State Capitol
Albany, NY 12224
                               
Dear Governor Spitzer:

I am writing you to seek assistance for businesses affected by the July 18th steam pipe explosion in east Midtown Manhattan, which is located in New York’s 14th Congressional District, which I represent.  Specifically, I ask that you make a formal request to the Administrator of the United States Small Business Administration (SBA) for disaster loan assistance.

I have been informed that building owners in the affected area of east Midtown were told by the New York City Office of Emergency Management yesterday that they are responsible for hiring certified inspectors and contractors to assess areas properties that may have been exposed to toxic or harmful substances after Wednesday’s explosion on East 41st Street.  I have also been informed that if debris from the explosion tests positive for asbestos or other toxic matter, local property owners will be required to have affected areas of their buildings cleaned by a certified contractor before they can reopen.  For many smaller businesses and properties such out-of-pocket costs can severely affect their operations, cash flow, and overall financial health.  I believe that the SBA and other appropriate government agencies might be able to provide assistance to help businesses survive and recover from the explosion.

As you know, the SBA Administrator has the authority to make available various types of loans to businesses in the event of a disaster, including loans for economic injury and to help with clean-up costs.  These loans can provide invaluable assistance to business owners as they seek to recover from a disaster and get their businesses back up running.  It is my understanding that the most direct way for the Administrator to use his authority is to receive a formal request from the governor of the state affected.  Considering the negative impact suffered by many of the businesses in and around the site of the explosion, I respectfully ask that you submit a formal request to the SBA Administrator for disaster assistance.

I am certain that we can all agree that New York’s small businesses are the backbone of our communities and that we must make every possible effort to assist them as they recover from the steam pipe explosion.  Disaster loan assistance is certainly a first step in helping these businesses recover and reestablish themselves.

I look forward to hearing from you regarding this request.  Should you or your staff wish to contact me regarding this request, please feel free to call my Washington office at (202) 225-7944 and ask for me or, in my absence, my Chief of Staff, Benjamin Chevat.  I thank you for your strong leadership of our great State, and your assistance with this urgent matter.

      Sincerely,

      CAROLYN B. MALONEY
      Member of Congress