Six months later, relief comes to NJ businesses

Six months later, a glimmer of light arrived for small business owners across the Garden State. On Monday, April 29, Governor Chris Christie along with HUD Secretary Shaun Donovan announced that the federal government approved an initial allocation of $1.83 billion in Sandy relief funds for the State of New Jersey. Calling it the “first tranche” of federal support, the money will be disbursed in the form of grants for business owners in addition to funds for homeowners’ assistance. New Jersey’s “Action Plan” will also include zero-interest loans for small businesses in Sandy-impacted areas as well as financial support for low-income and special needs housing.

While the announcement helped dispel uncertainty surrounding Sandy relief money, there remains concerns that those businesses which stand to benefit most from financial assistance may not in fact qualify. As part of the state’s funding requirements, businesses that wish to apply for grant money will need to meet several criteria:

• Businesses will have had to apply for SBA-loan assistance before the respective application deadline lapsed (May 1)
• Businesses that sustained a minimum of $5,000 in physical damage by Superstorm Sandy
• Businesses meeting the definition of small business at 13 CFR part 121 with a minimum of $25,000 and a maximum of $5,000,000 in annual revenues
• Home-based businesses excluded
• First-come, first-served

The first requirement could stand as a huge barrier to the program’s success in places where businesses declined to apply for SBA-loan assistance after Sandy. The final deadline for business owners to submit an application for SBA-approved loans lapsed on Wednesday, May 1, not long after the announcement regarding the disaster recovery plan’s approval.

In the City of Hoboken, approximately 2,400 businesses were impacted by Sandy; however, it is not immediately clear how many of those businesses applied for loan assistance nor if they meet the minimum dollar threshold for physical damages. Businesses will not be considered for any “economic losses” sustained due to Sandy. Hudson County Freeholder Bill O’Dea was recently quoted in the Hoboken Reporter as saying “many of the businesses impacted found it too cumbersome to apply for SBA loans, or found the interest rate wasn’t a bargain.” O’Dea has suggested forming a task-force charged with spreading awareness in particularly hard-hit cities like Weehawken, Jersey City, and Hoboken.

Many of the businesses impacted found it too cumbersome to apply for SBA loans, or found the interest rate wasn’t a bargain.

Maricel Presilla, artisanal chef and co-owner of Hoboken restaurants Zafra and Cucharamama, was one of those business owners directly affected by Superstorm Sandy. On April 18, Presilla spoke about her Sandy experience at an event organized by the Fund for a Better Waterfront at Proto Gallery. Located at 301 Willow Avenue, Presilla’s Zafra Kitchen falls right smack in the middle of FEMA’s new flood zone. Presilla’s higher-end restaurant Cucharamama is situated less than a block away. Actual flooding during Sandy mimicked what the flood maps predict, large-scale flooding occurred from Garden Street west to the Palisade Cliffs, engulfing both of Maricel’s buildings. In the absence of immediate federal or state assistance, Maricel was forced to rely on personal funds to stay afloat. Presilla pointed out that, without reserve funds accumulated during the busy season and a capable family network, her businesses likely would have suffered a different fate in the aftermath of the storm’s destruction.