Loans to Help Damaged East Harlem Businesses Recover

A state program will assist small businesses hurt by March’s major gas explosion.

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By Joanna Socha

When East Harlem suffered a gas explosion north of 116th St and Park Avenue in March – leveling two apartment buildings, killing eight people and injuring 70 — Rep. Charles Rangel called it ”our community’s 9/11.”

Some businesses are still trying to recover. The East Harlem Small Business Emergency Loan Program, announced by Gov. Andrew Cuomo in August, aims to help them get back on their feet.

The state established the $425,000 program, but money comes from a variety of sources, public and private, including a $100,000 state grant from the Empire State Development Corp., $125,000 from the Harlem Community Development Corporation and $100,000 from the Upper Manhattan Empowerment Zone. Assembly Member Robert Rodriguez has pledged to raise $100,000 in private funds, including $50,000 from the Partnership for New York City.

“Approximately 60 businesses were affected by the gas leak,” said Rodriguez. Some of the damage and losses were caused by street closures and depleted store inventories. A pizzeria on Park Avenue lost all its windows in the explosion, its manager said, even though it was not adjacent to the exploding building, but across the street.

“I know it’s a long time, and that the businesses had to go through a lot of obstacles so far, but low-interest loans can help them get back on their feet,” Rodriguez said. The loan amounts will range from $3,000 to $20,000.

“Our goal is to distribute the loans in such a way that all affected businesses will get some help,” explained Rodriguez. “We’re doing it in multiple ways; some companies have already submitted applications, but we are also going to walk the area and talk to people.

“Our main principle is that they must use the money to get back on their feet in Harlem, not to take the money for setting up business somewhere else in Manhattan,” he added.

The selection process will last “till the end of the year at least,” Rodriguez said, with money to be distributed “reasonably quickly” after that.

East Harlem businesses are slightly less enthusiastic. One of the affected company, Next Fragrances at 122 E. 116th St., owned by Bangladeshi immigrants, sells natural fragrances, essential oils and herbal products. The shop closed for 12 days after the explosion. “We lost about $7,000 because of it,” estimated employee Mohammed Uddim. Manager Iqbal Ahmed said he has expressed interest in a loan, but has not heard anything yet.

Christos Constantakis, who manages Christina’s Wine & Liquor at 116th and Park Avenue, said he has been losing $4,000 a week ever since the explosion. “What can I do with $20,000?” he asked, irritated. “I’m not even applying! It’s foolish! It’s like you take kids to McDonald’s to make them happy for a moment!”

He has spent 20 years in Harlem, and “always had a lot of customers”, but since the explosion he has found it difficult to operate.

The losses reflected “part of Park Avenue being closed for at least two months” so that customers couldn’t park nearby, explained Virgen Rios, a Christina’s employee.

But customers’ priorities also changed, she said. “If you were affected yourself by the explosion, you wouldn’t probably think of going to a party and getting alcohol, but of buying important stuff for your house,” Rios explained. “It’s difficult to imagine how one thing can affect you for months.”

Details of the loan program, including the application process and its starting date, remain to be determined. At the Community Board 11 meeting on September 16, State Assemblyman Jordan Salinger said talks with business owners would start “next week.”

But Hope Knight, chief operating officer of the Upper Manhattan Empowerment Zone, said the process might take longer. “We haven’t launched it yet; we’re still working on some details,” she said on September 22. We expect to start next week.” Two weeks later, she said the program probably would officially begin October 6.

About 15 companies have expressed interest in loans so far, she said, though “some of them are not from the area.” To be eligible, the small businesses must be located between East115th and East 118th Streets, and between Lexington and Madison Avenues.

They also have to have been in operation on March 11 – one day before the explosion — and registered with the state as a legally established business or not-for-profit. Businesses seeking help have to apply through the Upper Manhattan Empowerment Zone.

(Photo of Iqbal Ahmed, manager of Next Fragrances,  by Joanna Socha)

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