Secretary Martinez has presented New York with the largest single grant in the Department's history, $700 million, to help businesses located in Lower Manhattan recover from the terrorist attacks of September 11. The funding is part of a special appropriation to HUD's Community Development Block Grant (CDBG) program and will help affected businesses near ground zero in New York City recover from damages and lost revenue since the September attacks. The Empire State Development Corporation, in conjunction with the New York City Economic Development Corporation, will distribute the funds to local businesses based on a recently approved State action plan.

"There was no doubt that New York City would come back stronger than ever after the terrorist attacks," said Secretary Martinez. "This city has a tremendous history and a great heart, and the world depends on the strength of the New York economy and the continued vitality of its businesses."

"This program will help struggling businesses meet the real challenges they face since Sept. 11, but there is no government substitute for the thousands of workers, visitors and tourists that made Lower Manhattan so vital and vibrant," said New York Governor George Pataki. "Thanks to the leadership of President Bush and Secretary Martinez, and their ongoing commitment to New York, this expedited and unprecedented $700 million grant will be the foundation on which many of Lower Manhattan's small businesses build their future as we rebuild our city and state."

"New York City would like to thank President Bush and Secretary Martinez for their dedication to ensuring the economic stability and revitalization of Lower Manhattan," said New York City Mayor Michael R. Bloomberg. "This program will further enhance our ability to retain and attract businesses, as well as seizing the significant opportunity we have to remake Lower Manhattan into a vibrant, 24-hour commercial, retail, cultural and tourist destination."

Martinez announced the funding in November as New York State began developing a plan to help affected businesses in Lower Manhattan. Since then, HUD has been working closely with Gov. Pataki, Mayor Bloomberg and officials with the Empire State Development Corporation and the Economic Development Corporation in an unprecedented effort to expedite delivery of the funds to the State.

HUD's $700 million CDBG funding to New York State is part of the Bush Administration's initial $20 billion commitment to help the City recover from the terrorist attacks. In addition, HUD is vigorously working with New York officials to provide an additional $2 billion to further assist the City and State to respond to the pressing economic and community development needs in the wake of the attacks.

Read the full news release.

Read more about actions the Department is taking to provide relief for affected individuals and families in New York and around the nation.