Jan. 18, 2002 – The Small Business Administration has extended its deadline to April 22 for businesses impacted by the Sept. 11 terrorist attacks to apply for federal disaster assistance. The deadline was moved up from Monday.
The SBA provides low-interest loans of up to $1.5 million to qualifying companies that have suffered a loss of business as a direct result of events declared as federal disasters, such as hurricanes and the World Trade Center attacks.
The three-month extension is "to provide businesses an additional opportunity to apply," spokesman Carl Gaspari said from the SBA regional office in Niagara Falls, N.Y., that serves the territory.
So far, Gaspari said, 29 Virgin Islands businesses have applied for the loans, offered at 4 percent interest. To date, the SBA has approved six of the applications — for loans ranging from $5,000 to $90,000 and totaling $240,000, he said.
A few applications have been denied, he said, but the rest are awaiting a decision.
Some business owners have held off applying for assistance in an attempt to "tough it out," Gaspari said. However, as the economic fallout from the terrorist attacks continues, particularly in tourism-based economies such as the Virgin Islands, more companies are expected to apply, he said.
How large a loan a business can qualify for is directly related to its documented losses from the Sept. 11 attacks and/or subsequent federal actions up until Oct. 22, he said. For example, losses could be as a result of airport closures that began on Sept. 11 or from the reduction in service once flights resumed. Another factor is projected future losses related to the terrorist attacks. "All are taken into consideration," he said.
If an applicant feels that the amount of a loan approved is insufficient, Gaspari said, the owner can ask for additional funds.
Florida, which is heavily dependent on tourism, had received more SBA disaster aid than any other state but New York as of the start of January.
Business owners interested in applying for Sept. 11 disaster loans can obtain program information and application materials by visiting the SBA offices in the Federal Buildings in Charlotte Amalie and Christiansted, by calling the toll-free number 800-659-2955 or by visiting the SBA disaster assistance web site and clicking on "Expanded EIDL application and instructions."
