Posted on 09/27/2005 6:24:20 AM PDT by OESY
The personal, commercial and civic desolation left by Hurricane Katrina has inevitably bred comparisons to another scene of unthinkable loss and ruin: lower Manhattan after 9/11. While the recovery effort on the Gulf Coast is unique, one area in which New York's experience provides an example is its support for small business reconstruction.
Like Hurricane Katrina, the 9/11 attacks destroyed or crippled thousands of the smallest local businesses and nonprofits... the "soft" infrastructure of any commercial or industrial district....
After 9/11, Seedco became the primary organization assisting these businesses. We tailored a specific response to the challenges faced...
Our approach differed from the standard fare of tax credits and loan guarantees that President Bush has recommended in his Gulf Opportunity Zone proposal. We knew that speed was of the essence, so within days we had already lined up $4 million in initial private funding. We bypassed established rules and procedures, instead creating them anew as we moved forward. We were able to put money in the hands of our first grantees and loan recipients just two months later. We eventually attracted more than $40 million in private and public support.
We used a multifaceted approach to keep businesses alive. We offered a package that included grants to cover one-time losses; loans for working capital expenses; and temporary wage subsidies so employers could keep low-wage workers that they would otherwise have had to let go.
We avoided the standard practice of providing everyone the same amount of money regardless of the differences in losses sustained. Instead, we assessed applicants individually and customized the assistance to their specific needs and actual, tangible losses. We also provided old-fashioned business planning such as financial and legal counseling, budget development and marketing advice....
(Excerpt) Read more at online.wsj.com ...
Sounds like the right approach.
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