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"Small businesses affected by attacks can apply for loans"



Saturday, November 17, 2001 

Small businesses affected by attacks can apply for loans
By TOM SHEAN
The Virginian-Pilot


NORFOLK -- To help businesses that suffered disruptions after the Sept.
11 terrorist attacks, the U.S. Small Business Administration said it
will distribute applications for low-interest emergency loans at Norfolk
International Airport on Tuesday. 

Any small business that can demonstrate damage from the attacks or the
shutdown in air traffic that followed may be eligible for a
disaster-assistance loan, said Jimmie G. Anderson, deputy director of
the SBA's Richmond district. 

``We are targeting businesses at airports right now because of the
problems they've gone through,'' he said. 

However, businesses at Norfolk International have fared better than
those at many other airports because of a rebound in Norfolk
International's passenger traffic, said Wayne Shank, deputy executive
director of the Norfolk Airport Authority. 

Norfolk International's two major concessionaires, Anton Airfood and
Hudson News, ``have indicated that they're doing very well,'' Shank
said. ``We're the exception to the rule.'' 

Anton Airfood provides food and beverage service at the airport and
Hudson News operates its newsstands and gift shops. 

After a sharp falloff in revenue from parking and other activities
during September, there's been a gradual recovery due partly to the
arrival of discount air carrier Southwest Airlines, Shank said. 

Under the SBA's emergency loan program, a small business that suffered
from the Sept. 11 attacks may be able to borrow as much as $1.5 million
to pay operating expenses until its business returns to normal. The
loans carry a 4 percent interest rate with monthly payments for as long
30 years. 

However, the loan amount is limited to the economic damage calculated by
the SBA, the agency said. Also, the SBA said it must determine, before
approving an application, whether a prospective borrower can and will
replay the loan. 

When considering an application, the SBA said it also takes into account
any compensation available from business-disruption insurance and the
financial resources of the business and its owner. 

To determine the extent of economic damage done to a business, the SBA
requires that a loan applicant provide tax returns and other financial
information. It also requires that the business or its owner pledge
collateral if the loan exceeds $5,000. The business must maintain full
hazard insurance for the life of the loan. 

The SBA said it attempts to notify an applicant within 21 days of its
decision on whether to make the loan. 

SBA representatives will distribute copies of the two-page applications
at Norfolk International's Conference Room B from 10 a.m. to 2 p.m.
Tuesday. 

Loan applications and additional information also are available by
calling Scott Dailey in the SBA's Richmond office at (804) 771-2400,
Ext. 141. 


Information about the disaster loan program is available from the SBA's
Web site, www.sba.gov/news/current01/economicinjuryfactsheet.html. 

Small businesses have until next Jan. 21 to apply for the emergency
loans.

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