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WASHINGTON DC...District of Columbia Councilmembers David A. Catania (R-At Large) and Jack Evans (D-Ward 2), along with Council Chair Linda Cropp, Mayor Anthony Williams, and other Councilmembers, announced today an emergency relief package for D.C. businesses facing economic hardship as a result of the tragic events of September 11. The District leaders are proposing up to $100 million in emergency loans and loan guarantees for District-based hospitality and tourism businesses devastated by the terrorist attacks of September 11 and the closure of Reagan National Airport. Thus far, Councilmembers Sandy Allen, Sharon Ambrose, Harold Brazil, Kevin Chavous, Adrian Fenty, Phil Mendelson, Kathy Patterson, and Carol Schwartz have agreed to co-introduce the bill.
In emergency legislation that the Council will consider on October 2, the "District of Columbia Emergency Assistance Emergency Act of 2001" proposes that qualified companies would be able to receive a low interest loan of up to $1 million or a loan guarantee of up to $5 million (or $4 million if they have receive a $1 million loan). Qualified companies must be District-based and be engaged in the restaurant, catering, lodging or surface transportation industries. "It is during times such as these that our government must step in and provide emergency assistance to its people," said Councilmember Catania. "It is our hope that these loans and loan guarantees will lend a helping hand to keep countless District businesses afloat during these difficult times and keep District employees in their jobs." "Many of our hotels, restaurants, and related businesses are experiencing sharp declines in revenue-industry experts place it at $10 million daily," said Councilmember Evans. "Rather than see wholesale closings and bankruptcies, we believe bridge loans are the best solution to helping local entrepreneurs get through this crisis." The loans and loan guarantees available under the Emergency Assistance Program shall be for no longer than three years. The interest rate for the loans shall not be higher than 5 percent. An up-front application fee of not more than $2,000 may be charged for the loan guarantees, and the loan guarantee fee amount shall not be more than 2.5 percent of the maximum guaranteed amount. The total amount of direct loans under the Emergency Assistance Program shall not exceed $50 million and the total amount of obligations guaranteed by the loan guarantees shall not exceed $50 million. Under the proposed legislation, the District Chief Financial Officer would administer the Emergency Assistance Program and make sure the companies applying for the loans and loan guarantees meet the necessary requirements. The CFO would also certify the amount the company has been impacted by the terrorist attacks and by the closure of Reagan National Airport. The CFO would begin soliciting applications immediately and issue loans and loan guarantees within 15 days after they have received an application. |
