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August 8, 2014

Velázquez Hosts Roundtable on
Small Business Disaster Assistance

Calls for Sandy Work Action Team

Washington, DC –On Wednesday, Congresswoman Nydia M. Velázquez (D-NY) hosted a roundtable discussion between federal, state and city officials aimed at finding ways to ensure New York City small firms impacted by Hurricane Sandy receive assistance they need to fully recover.

“Too often, we’ve found city, state and federal assistance programs have delays and hurdles that impede New York businesses from securing the help they deserve,” Velázquez noted. “By bringing together business owners and service providers at all government levels, we can cut through the red tape and ensure businesses secure grants and loans to speed their recovery.”

Wednesday’s roundtable follows up on a May forum held by the Congresswoman. This week’s event was attended by business owners who spoke passionately about their difficulties securing assistance. In addition, representatives from federal, state, and city agencies attended to report on progress they have made streamlining small business recovery programs. It was also attended by Councilmen Carlos Menchaca, Mark Treyger, and Brad Lander.

Despite the wide range of programs ostensibly aimed at helping small firms recover from the hurricane, many New York businesses continue struggling to access aid. A recent New York Fed study found that 40 percent of businesses they surveyed were impacted by the storm. Of those affected, most were still looking for financing one year after the storm, with a typical business seeking a working capital loan for less than $100,000.

“After natural disasters, one of the most important things we can do is help revive the business base,” Velázquez noted. “Doing so helps entire communities come back, rebuild and return to prosperity.”

A range of federal, state and City agencies have dedicated resources to helping small firms recover. At the federal level, the Small Business Administration has an established a disaster loan program. Additionally, Congress funded the Department of Housing and Urban Development (HUD) to provide cities and states Community Development Block Grants for Disaster Recovery (CDBG-DR).
Despite these significant investments, there must be better coordination among agencies, and many businesses complained of being unable to access assistance. For example, during May’s discussion it was found that while both New York City and New York State use CDBG-DR funding for business loan and grant programs, one city initiative required entrepreneurs to secure a loan with strict criteria, before being eligible for a grant. At the meeting the Commissioner of the NYC Department of Small Business Services explained their newly redesigned program allows businesses to apply for grants first with more flexible requirements and for higher amounts. By allowing businesses to apply for a grant first, more firms will be eligible for a loan, allowing them to strengthen their long term cash flow.

“Small businesses are the cornerstone of New York’s economy and when it comes to recovery from Sandy, we owe them better than we’ve delivered to date,” Velázquez noted. “It is my hope that we can continue working collaboratively to improve this process for New York’s entrepreneurs.”

At the conclusion of the meeting, the Congresswoman proposed the formation of "SWAT" - Sandy Work Action Team - with members of each agency, service providers, elected officials, and small business representatives committed to meeting regularly and working through remaining challenges. This will help ensure New York City small firms impacted by Sandy receive assistance they need to recover. The Congresswoman plans to hold another interagency round table meeting in three months to gauge progress.

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