New York State and the federal government continue to consider our request for a declaration to permit disaster loan assistance related to the Sag Harbor fire on December 16. No final decision has been made by the federal government on this request. However, the focus of these efforts has shifted from actual physical loss to economic injury. Due to the extent of existing insurance coverage, there may not be sufficient uninsured physical damage to qualify for a disaster declaration based on physical damage.

Based on information collected thus far, it is more likely that a declaration could be issued based on economic loss due to the business interruption during this important sales period. The Small Business Administration will be working with New York State to qualify Sag Harbor for relief based on economic injury. Economic injury disaster loans can be used to advance funds to business based on what they would have earned if not for the fire. Such working capital can be very helpful to small businesses, especially during the lean winter months.

It is estimated that at least 50 businesses have suffered economic injury due to the fire. The Village will be working with the Sag Harbor Chamber of Commerce to complete the forms and collect the information required to make a declaration based upon economic injury. I urge all affected businesses to provide this additional information. Interested parties may contact my office at 631-537-2583 to address any questions about these efforts. I thank Governor Cuomo and his administration for its dedication to this effort.