Contact: Sunny Mindel/Curt Ritter (212) 788-2958
Bernadette O'Leary (212) 312-3525 (EDC)
Mayor Rudolph W. Giuliani today announced that the City will come to the aid of hundreds of businesses in Upper Manhattan that suffered losses due to the Consolidated Edison of New York, Inc. (Con Edison) blackout on July 6th. Following the recent decision by the Federal Small Business Administration denying economic assistance to businesses affected by the blackout, the City will make available low-interest emergency loans to those businesses whose damages exceed the $2,000 reimbursements being offered by Con Edison. The loans will be administered on behalf of the City by the New York Economic Development Corporation (EDC).
"As a result of Con Edison's decision to cut the power to much of Upper Manhattan, more than 200,000 people and over 120 businesses were left in the dark," said Mayor Giuliani. "Con Edison's decision cost local businesses more than $3.3 million in damaged inventory and lost revenue. As a result of the Small Business Administration's recent decision to deny any economic assistance and the inadequate economic assistance offered by Con Edison, the City is making these emergency low-interest loans available. In an effort to ease the hardships caused by their loses and to help restore their business operations, the City will provide emergency low-interest loans to assist these businesses in recovering from the damages they suffered through no fault of their own."
The loans will be available to qualified commercial, industrial, retail and service companies in amounts of $3,000 to $50,000 at below market interest rates, for a term not to exceed five years. The loans can be used for replacement of machinery and equipment and inventory losses. To qualify for a loan, business owners will have to complete an application and demonstrate their ability to repay the loan. For more information businesses should contact EDC at (212) 312-3600.
On July 6, 1999, at approximately 10:11 p.m., Con Edison cut all power to the local electrical distribution system serving the Washington Heights area of Manhattan. The power disruption plunged all of Manhattan north of 155th Street into darkness, trapped subway riders in sweltering trains, caused tons of food to spoil, and jeopardized the health and safety of hundreds of thousands of people. By the time power was restored almost 18 hours later, the City of New York had incurred millions of dollars in expenses to provide additional emergency services and thousands of residents and businesses suffered tremendous economic losses.