They want to be given money. Which is it, "I built this." or "Give me a government entitlement."?
BROOKLYN, N.Y. (CNNMoney) -- More than 100 business owners jammed into a standing-room-only meeting Thursday afternoon in the Red Hook neighborhood of Brooklyn to hear New York City officials describe the relief assistance available to entrepreneurs who saw their restaurants, stores, warehouses and other businesses devastated this week by Sandy's flooding.
Over and over, city representatives repeated one word: loans. The U.S. Small Business Administration offers low-interest disaster loans of up to $2 million over terms as long as 30 years. The loans are financed directly by the government and capped at a 4% interest rate.
For a business loan, it's a remarkably good deal, and it's one of the federal government's main tools for helping small businesses survive crippling disasters. Red Hook's local congresswoman, Nydia Velázquez, repeatedly urged attendees to look hard at the SBA program. New York City is also offering bridge loans of up to $10,000 for area businesses that need working capital fast.
But the assembled crowd reacted to that word -- loan -- like it was a four-letter epithet.
"Most of us are deeply overextended as it is," said Monica Byrne, the co-owner of local restaurant Home/Made. "We're all shut down. We have staff we can't pay. We really need some support that's not about loans."
