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Early New Year's Celebration for Struggling Small Businesses

Early New Year's Celebration for Struggling Small Businesses

Published 12-27-01

Submitted by World Vision

World Vision, through its American Families Assistance Fund, is collaborating with micro-lender ACCION New York's American Dream Fund to help small business owners who do not qualify for other emergency loans or are in immediate need for cash to stay in business.

"Many of the small business owners lack the necessary financial documentation required by federal agencies and other emergency loan funds," says ACCION New York's Executive Director Terri Ludwig. "They are not able to demonstrate cash flow prior to the attack, or they have insufficient credit histories. And even if they do qualify, most simply cannot afford to wait the typical three weeks or more turnaround for disbursements."
World Vision has contributed sorely needed grant funds to complement ACCION's disaster relief loan program to assist businesses affected by the disaster. So far, 28 businesses have received these grant/loan packages.

One of those businesses is owned by Michael Kramer. Since 1969, Kramer's family has owned an audio-visual business in the Tribeca neighborhood. In September, the business had only seven days of cash receipts. October was little better; business was down by 55 percent. "Starting all over again because of a terrorist attack against the United States of America was never a scenario that we considered," says Kramer.

To be eligible for the program, a business must be operating in lower Manhattan below 14th Street or had at least 50 percent of their clients or contracts in the affected area.

World Vision will give business owners a one-time cash grant of up to 10 percent of the full loan amount. "We see these grants as an opportunity to help jump start small business owners, getting them through tough times resulting from the attacks," says John Clause, Senior Director of World Vision New York.

Business owners receiving the ACCION low-interest loans and the World Vision one-time grants include many of the family owned businesses that give New York its unique character.

In business for more than 20 years, Abdullah Adlouni's restaurant is located a few blocks from Ground Zero in New York's financial district. Adlouni was forced to close for three weeks.

With the ACCION loan, Adlouni made his mortgage payment and has been able to keep his restaurant fully staffed. "I have eight employees, and I didn't have to fire anyone," he says. Although the restaurant is still making only 60 percent of its revenues before the disaster "things are slowly coming back to normal."

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World Vision is a Christian relief and development organization dedicated to helping children and their communities worldwide reach their full potential by tackling the causes of poverty. World Vision serves the poor regardless of a person's religion, race, ethnicity, or gender. For more information, visit www.worldvision.org.

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