Oct. 19, 2001 — In an unprecedented move, the U.S. Small Business Administration will extend financial assistance to businesses affected by the Sept. 11 terrorist attacks -– even those that aren’t located in the immediate vicinity of the tragedies.
Virgin Islands businesses that have suffered economic losses as a direct result of the drop-off in tourism since the attacks may be eligible for the low-interest Economic Injury Disaster Loans.
The SBA’s newly widened access to such loans represents a major, unprecedented change," Delegate Donna Christian Christensen said.
Until now, only businesses located in communities where a federal disaster had been declared were eligible to apply for SBA disaster loan assistance. In the case of the Sept. 11 attacks, that would have limited assistance to New York City and Washington, D.C., and adjacent counties.
But because of the wide-ranging economic effects of the attacks, the SBA will authorize assistance across the country to eligible small businesses that have suffered substantial economic injury as a result of the terrorism or action taken by the federal government directly after the attacks, Christensen said.
The Economic Injury Disaster Loans will provide eligible small businesses with money to meet ordinary operating expenses that they would have normally been able to cover had the attacks not occurred. Christensen said businesses can apply for loans of up to $1.5 million if they have suffered "substantial economic injury" as a result of the terrorism.
The interest rate on the loans is 4 percent for a maximum of 30 years. Christensen said the SBA determines the amount of economic injury, the term of each loan and the payment amount, based on the financial circumstances of each borrower.
In the Virgin Islands, tourism-related businesses have been hit especially hard because of the traveling public’s reluctance to fly since the terrorist attacks, in which hijacked passenger jets were crashed into the World Trade Center and the Pentagon.
Officials of the territory's two hotel and tourism associations have reported occupancy rates of as little as 10 percent since Sept. 11, and some properties have laid off employees.
"This is an opportunity for our hotels, travel agents, small airlines, taxi operators and other tourism-related businesses who have been affected by the Sept. 11 attacks to apply for economic assistance," Christensen said.
Businesses in the territory interested in applying for economic disaster loans should call 1-800-659-2955 to request an application. The application deadline is Jan. 21, 2002.
For more information, see the SBA website, or call the delegate’s office at 778-5900 on St. Croix or 774-4408 on St. Thomas.
