TABLE 15.-Types of eligible expenses for DBD loans, June 30, 1961, through Dec. 31, 1963 (Col. 1) Items of expense (Col. 2) Does SBA policy permit loan funds for expenses in col. 1?1 (Yes or No) 1. Expenses in obtaining replacement property and closing loan..... 1. Not normally, but if applicant has no funds available for these costs we would consider allowing loan funds to cover them. 11. Moving expenses (less amount paid by public agency). (a) Disconnecting and dismantling fixtures, machinery, and (b) Packing, crating, and uncrating personal property. (c) Loading and unloading personal property. (d) Temporary storage of personal property. (e) Temporary insurance on personal property. (f) Transporting personal property. Transporting owner and family to new location. (h) Reassembling and reinstalling fixtures, machinery, and (i) Inspection fees for reinstalled property. Taxes incident to moving expenses. 2. Yes. 3. Yes. 4. Yes. 5. Yes. 6. Yes. 7. Yes. 8. Yes. 9. Not normally, but if applicant has no funds available for these costs we would consider allowing loan funds to cover them. 10. Same as 9 above 4. 11. Yes. 12. Purchase an established business to substitute for a displaced 12. Yes. business.2 (e) Salary or withdrawal by owner for subsistence.. (f) Salary of employees... (9) Advertising and promotional expenses (h) Cash for miscellaneous operating expenses. 15. Enter below other items of expense for which funds may be loaned: (a) Other reasonable expenses for which applicant can estab- 13. Yes. 14. Yes. 1 Instruction to SBA was: "If answer in col. 2 is 'No,' attach full explanation. Also explain, for all items except 2, 3, and 4, if an answer in col. 2 does not apply equally to displaced owners and nonowners or real property". Therefore, answers given apply equally to owners and tenants. Instruction to SBA was: "Please give the number of loans which included funds for item 2; items 3 and 4 combined; item 12; item 13; and item 14". The next table gives this breakdown. TABLE 16.-Principal uses of loan proceeds,1 June 30, 1961, through Dec. 31, 1963 Chief Counsel, Select Subcommittee on Real Property Acquisition, DEAR MR. KREVOR: As requested by your staff recently, we are submitting some additional information about our displaced business disaster loans which will supplement Mr. Fredric T. Suss' letter to you dated April 13, 1964. As discussed with you by telephone, there is enclosed a table showing the loans by region and also one showing the loans by State. Both tables give the statistics from January 1, 1964, through June 30. I hope that this information will be helpful to you. With kind regards, I am, Sincerely, LOGAN B. HENDRICKS, Acting Deputy Administrator. Displaced business disaster loan (DBDL) applications received and loans approved, period Jan. 1, 1964, through June 30, 1964 Displaced business disaster loan (DBDL) applications received and loans approved, period Jan. 1, 1964, through June 30, 1964 APPENDIX F A REPORT OF THE "BEFORE AND AFTER EARNINGS" OF OWNERS OF BUSINESS CONCERNS DISPLACED BY URBAN RENEWAL IN SOUTHWEST WASHINGTON, D.C., DURING 1959 AND 1960 PURPOSE In the past few years, there have been several excellent research studies of business concerns displaced by urban renewal and other public projects.1 These studies have evaluated the physical and economic characteristics of the displaced businesses that relocate and discontinue. This evaluation of the earnings characteristics of displaced businesses serves as a supplement to earlier research studies and to testimony taken on these and related studies in the hearings before this subcommittee.2 Presented here for a recent urban renewal project are earnings and related characteristics of businesses before displacement, and the earnings and related characteristics of businesses after displacement. Also evaluated are the characteristics of businesses that discontinued and earnings of their proprietors. "Earnings," as used here, means the net earnings of the business including any compensation paid by the business to the owner, his spouse, or his dependent children. PROJECT SELECTED FOR ANALYSIS Businesses displaced during the approximate period 1959-60, from the Southwest Urban Renewal Area C and C-1 in Washington, D.C., were selected for analysis. This project contained both business establishments and dwellings and in this respect is similar to many other urban renewal projects throughout the Nation. EVALUATION PROCEDURES Under procedures developed by this subcommittee, the District of Columbia Redevelopment Land Agency provided basic data on number, type, and tenure of businesses displaced and whether they discontinued or relocated. The Internal Revenue Service was pro 1 For example, see reports by William N. Kinnard, Jr., and Zenon S. Malinowski, "The Impact of Dislocation From Urban Renewal Areas on Small Business," University of Connecticut, July 1960; John P. Alevisos, "An Effective Program for the Relocation of Businesses From Urban Renewal Areas," Massachusetts Department of Commerce and the Bureau of Public Affairs of Boston College, July 1963; and Basil G. Zimmer, "The Effects of Displacement and Relocation on Small Business," prepared by Brown University, under the Small Business Administration management research grant program, Quadrangle Books, Inc., 1964. See for example, testimony by John P. Alevisos, Sidney Goldstein, William N. Kinnard, Jr., and Basil G. Zimmer at hearings before the Select Subcommittee on Real Property Acquisition of the Committee on Public Works, House of Representatives, 88th Cong., at Boston, Mass., and Providence, R.I., Feb. 27-28, 1964. |