Evening star., 1961-07-23
Law May Aid
Small Firms
Hit by Projects


4 A liberal helping hand for
Washington area small business
firms forced out by. urban re-
lnewal, new highways ana
F'other construction with Fed
eral funds" Is extended by as
Iyet-little-known provisions Of
lnew legislation.
One large group Of potential
beneficiaries is expected to be
several dozen Capitol Hill firms
whose buildings are involved IN
q two-block takeover adjacent
to the Capitol.
Such firms probably" would
lbe eligible to apply for help.
an official Of the Small Busi-
mess Administration said last
might. But he added:
II would rather not give q
definite opinion, off-the-cuff,
without checking this out"
Other officials had no esti::
mate last night Of the number
Iof additional District area firms
which may become eligible for
lsuch loans and grants.
But they said two provisions
Of new legislation are bound to
be helpful"
One sets up Q new program
lof Small Business Administra.
ton long term loans at low in
Iterest rates to finance re-estab-
Ilishment Of operations at new
locations.
A second removes O $1,000
ceiling on moving expense
grants paid by the Federal
Government to firms forced to
relocate.
New Acts Aid
The liberalization is con-.
tanned in the new Housing Act
Of 1851.
Under the new loan program
spelled out by SBA Admin
iStrator John e. Horne, the
agency will provide financing
for UP to 20 years at 33s per
cent annual interest through
direct Government loans aud
loans made in cooperation
with private lending institu-
1tions.
Capitol Hill firms would ap-
pear to be made eligible BY
language Of the act, which
states that aid can 60 to husl-
nesses sustaining substantial
economic injury" through the
urban renewal and highway
programs, or by "any other
construction conducted by, or
with, funds provided BY the
Federal Government"
A considerable number OF
long established businesses on
Independence avenue facing
the Library Of Congress, be-
tween First and Seconds streets
Sc, are expected to be forced
out soon in q takeover by Con-
greSs.
The total area to be pur-
chaSes by the Federal Govern
ment extends from First street
to the west side Of Second
: street, and from Independence
avenue to the north side Of c
street.
Homes Not Helped
Also hurt will be many own.
ers Of homes restored In the
area during the last dozen
years. Under terms Of the leg
islation, they will not be en-
: titled to share in the loan pro-
gram.
Ultimate use Of the land to
be acquired by Congress has
not been finally determined,
though one purpose mentioned
was to use 1t as Q site for an
annex to the Library of Con-
gresS.
For loan purposes $2S million
has been added to SBA's re-
volving fund, Mr.. Horne said.
Amounts Of individual loans,
he explained. win be based on
the Agency's estimate Of eco.
nomic injury" to relocatees.
Borrowings may include
funds for the purchase Of new
or existing facilities and new
machinery and equipment, as
well as working capital while
awaiting business in the new
location"
Applicants must have q sue
cessful record Of business ex-
perience and be able to demon.
strate Q reasonable prospect
that the loan can be repaid
from earnings Of the business
! as re-established," the sBA
said. @