NEW YORK -- Businesses could be getting federal aid for economic losses suffered after a steam pipe burst underground in midtown Manhattan last week, causing widespread damage and spraying bits of asbestos and gunk throughout the area.
The explosion injured several people, and a woman who was fleeing suffered a heart attack and died. Streets in the area around the blast site were closed for several days.
Mayor Michael Bloomberg and Gov. Eliot Spitzer have asked the federal Small Business Administration to declare a Physical and Economic Injury Disaster related to the explosion, which affected hundreds of businesses in the commercial neighborhood around Grand Central Terminal.
If the request is approved, loans would be available for the affected businesses, the mayor's office said Tuesday.
The city said more than 1,000 businesses suffered severe economic losses, but it did not have a total dollar figure. For the purposes of the application, the city documented that 10 businesses _ restaurants, doctors' offices and retail stores _ had a gross revenue loss of 100 percent, at a total of $431,300 for the five days that followed the July 18 explosion.
The federal agency's low-interest economic injury loans can help cover losses caused by disasters. The money could be used to repair or replace property, machinery, equipment, fixtures and inventory.
New York Sen. Charles Schumer called on the SBA to approve the request.
"Last week's massive steam pipe explosion dealt a huge blow to small businesses located in the area close to the blast," he said. "The SBA must now step up to the plate to provide local businesses with the funding they need to repair the damage and get back on their feet."
The city's Department of Small Business Services was already offering interest-free emergency loans for disrupted businesses.
The U.S. Small Business Administration did not immediately return telephone calls seeking comment Tuesday.
The private utility that owns the 83-year-old steam main said on its Web site that it would cover up to $9,000 in claims from commercial customers for perishable merchandise.
The explosion injured several people, and a woman who was fleeing suffered a heart attack and died. Streets in the area around the blast site were closed for several days.
If the request is approved, loans would be available for the affected businesses, the mayor's office said Tuesday.
The city said more than 1,000 businesses suffered severe economic losses, but it did not have a total dollar figure. For the purposes of the application, the city documented that 10 businesses _ restaurants, doctors' offices and retail stores _ had a gross revenue loss of 100 percent, at a total of $431,300 for the five days that followed the July 18 explosion.
The federal agency's low-interest economic injury loans can help cover losses caused by disasters. The money could be used to repair or replace property, machinery, equipment, fixtures and inventory.
New York Sen. Charles Schumer called on the SBA to approve the request.
"Last week's massive steam pipe explosion dealt a huge blow to small businesses located in the area close to the blast," he said. "The SBA must now step up to the plate to provide local businesses with the funding they need to repair the damage and get back on their feet."
The city's Department of Small Business Services was already offering interest-free emergency loans for disrupted businesses.
The U.S. Small Business Administration did not immediately return telephone calls seeking comment Tuesday.
The private utility that owns the 83-year-old steam main said on its Web site that it would cover up to $9,000 in claims from commercial customers for perishable merchandise.
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