The Peru Gazette

Loan fund to provide assistance for Essex County businesses affected by Hurricane Irene

Empire State Development today announced that it has approved the Essex County Industrial Development Agency to redirect $250,000 of unused Champlain Bridge closure assistance funds to create the Hurricane Irene Recovery Community Revolving Loan Fund.  The loan fund will assist businesses located in Essex County that incurred additional costs and experienced economic losses as a result of the hurricane. The revolving loan fund will be administered by the Essex County IDA.  As loans are repaid, funds will stay in the community for future business investment and growth.  

“Hurricane Irene had a devastating impact on the North County’s economy,” said Empire State Development President, CEO and Commissioner Kenneth Adams. “Under the leadership of Governor Cuomo, we are working hard to ensure that local businesses devastated by Hurricane Irene are provided with the resources they need for a full recovery.”

The program will provide assistance in the form of loans for the purchase of machinery and equipment, working capital, and lines of credit secured with personal guarantee. Eligible borrowers include: businesses or not for profit organizations, which have been independently owned and operated with 100 employees or less, have been in business since June 1, 2011 and are New York State taxpayers.

Loan program funds may be used for justifiable business purpose in direct reference to the impact from Hurricane Irene on August 28, 2011, including, but not limited to: machinery and equipment; current assets, including inventory and receivables; permanent working capital; lines of credit; and refinancing of existing collateralized debt where such refinancing is a required element of the project financing.

“The Essex County IDA staff has been working closely with the distressed businesses, communities, and local and state agencies since day one of this crisis,” said Darren Darrah, Chairman of the Essex County Industrial Development Agency. “We are eager to start working with the local businesses that have been affected by Hurricane Irene. The Essex County IDA appreciates Governor Cuomo’s dedication to ensuring our businesses attain sustainable recovery.  We thank Empire State Development for their assistance in program funding—the consideration to allow these monies to remain in the county for future reinvestment will be critical to further local economic development efforts in Essex County.”

“We appreciate Governor Cuomo and Empire State Development’s commitment of resources to help local businesses that have been severely affected by the hurricane,” said Carol Calabrese, Co-Executive Director of the Essex County Industrial Development Agency.  “These funds help create a loan program that is responsive to the significant economic hardship on local businesses caused by this natural disaster.  Taking into consideration the economic burden that Hurricane Irene has caused local businesses, there will be repayment of the principal only, no interest payment.  This is another viable resource available for small businesses located in Essex County, to help get them back on their feet.”

The maximum amount of loan program financing may not exceed the ratio of $25,000 for each business loan request for working capital/lines of credit and a maximum of $25,000 for equipment. The business loans will have a zero percent interest rate and will offer a six month moratorium on principal payments from the date of the loan closing.

For more information on the Hurricane Irene Recovery Community revolving Loan Fund, call 873-9114 or go to www.essexcountyida.com. The full loan application and policy and guidelines are on the website.

Empire State Development partnered with the Essex County IDA in developing the Community Revolving Loan Fund, announced as a component of the Champlain Bridge economic assistance program in 2010.  This $635,000 fund was created to assist businesses with operational expenses, maintaining payroll and order inventory in response to the bridge closure.  Unused funds from this program will be directed to the Hurricane Irene Recovery Community Revolving Loan Fund.

Empire State Development is New York’s chief economic development agency and administrator of Business First, a statewide business resource portal. The mission of Empire State Development is to promote business investment and growth that leads to job creation and prosperous communities across New York State.  ESD also oversees the marketing of “I LOVE NY,” the State’s iconic tourism brand.  For more information on Empire State Development, visit www.esd.ny.gov.