[Congressional Record (Bound Edition), Volume 147 (2001), Part 12]
[Extensions of Remarks]
[Page 17985]
[From the U.S. Government Publishing Office, www.gpo.gov]



 INTRODUCTION OF THE TERRORIST DISASTER RELIEF FOR SMALL BUSINESSES ACT

                                 ______
                                 

                          HON. JOHN J. LaFALCE

                              of new york

                    in the house of representatives

                      Tuesday, September 25, 2001

  Mr. LaFALCE.  Mr. Speaker, the tragic events of September 11, 2001, 
have caused a massive disruption of businesses all over the country. 
The most visible of the economic scars can be found in lower Manhattan, 
which some 15,000 businesses called home, and in the air transport 
industry, which the government was forced to close. But, the economic 
hardships caused by the September 11th terrorist attacks reach far 
beyond the areas immediately impacted by the attacks and involve all 
types of businesses.
  In order to overcome their current difficulties, businesses who have 
suffered substantial hardship because of the September 11th terrorist 
attacks will need access to low-cost credit to cover their uninsured 
losses and to provide needed operating cash while they regain their 
footing. Congress has provided financial assistance to the airline 
industry. And, thankfully, many small businesses in the New York City 
area will qualify for economic injury disaster loans from the Small 
Business Administration. However, there are many more innocent small 
businesses who need the Government's help to overcome the economic 
difficulties caused by the terrorist attacks and the resulting turmoil 
in the air transportation industry.
  Among the small businesses that have been injured are those that sell 
goods and services to the airports, airlines and airline passengers. 
The current crisis has also taken a heavy toll on the entire tourist 
industry, particularly, the many small businesses that are integral to 
that industry. The closing of commercial air traffic during the week of 
September 11th had a severe impact on many businesses that depend on 
the airlines and air cargo industry for the delivery of items crucial 
to the conduct of their enterprise. While we cannot yet measure the 
economic impact of the attacks on the small business community, many 
small businesses all over the country are clearly suffering.
  The SBA has received requests for disaster assistance from small 
businesses all over the United States, including small businesses in 
the Dallas-Fort Worth area and California, and small businesses from as 
far away from New York City as Hawaii. But, under the current 
restrictions that apply to the SBA disaster loan program, the SBA 
cannot provide disaster assistance to businesses outside of a declared 
disaster area and contiguous communities.
  My bill, the Terrorist Disaster Relief for Small Businesses Act, 
would provide needed disaster assistance to businesses all over this 
Nation. First, the bill gives the Small Business Administration the 
authority to provide economic injury disaster loans to a small business 
located anywhere in the United States that can demonstrate it 
experienced a substantial economic injury because of the terrorist 
attacks, including injuries caused by actions taken by the government 
in response to attack. Additionally, the bill would permit the 
Administrator of the SBA to relax, as he deems necessary and 
appropriate, the ``small business'' size standards for an injured 
business that, as a technical matter, does not meet the size standards. 
These exceptions to the normal SBA criteria would only apply to 
businesses that have been injured by the September 11th attack.
  These are extraordinary times that call for extraordinary solutions 
to overcome the Nation's current crisis. I believe altering the 
criteria for SBA disaster loans will help the Nation's small businesses 
to begin to recover from the economic hardships caused by the September 
11th attack. I urge my colleagues to support this important 
legislation.

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