The future remains unclear for the Madelaine Chocolate Company, a Rockaways business that sustained $50,000,000 in damage after Hurricane Sandy. The Wall Street Journal reports that the company seeks $10,000,000 in federal Sandy recovery funds from the city to replace and repair machinery. City officials do not think they can grant the full amount, as there’s only about $42,000,000 in federal dollars for the Sandy loan and grant program. As the WSJ says, “The chocolate company has tested the limits of the city’s Sandy recovery programs, which were designed to help much smaller businesses, and its plight has raised hard questions about how New York should distribute the rebuilding dollars.”
Madelaine’s declined emergency fund money from the city — a $25,000 emergency loan, $10,000 grant and an emergency sales-tax deferment — due to a long application process. The business has, however, secured a $12,900,000 low-interest loan from the U.S. Small Business Administration as well as $3,000,000 from a flood insurance settlement. They also applied for a $1,000,000 loan from the city, despite seeking the full $10,000,000. Back in February, Madelaine’s put its 200,000-square-foot factory up for sale. The company is considering relocating outside New York, despite hopes to remain in the Rockaways. Madelaine’s has been in the neighborhood since 1967.
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