News Release

HSBC Bank USA Establishes $200 Million Loan Program Dedicated to Small Business Disaster Relief

26 September 2001

HSBC Bank USA today announced that it has established a $200 million fund that will be available immediately for loans to small businesses directly or indirectly affected by the World Trade Center tragedy. Through December 31, 2001, HSBCs Rebuild New York Loan Program will offer companies seeking a loan of $2 million or less, a particularly attactive fixed rate loan, currently between 6.00 and 6.75 percent, or a variable loan at prime minus two points.

"Small businesses form the backbone of American business," said David Kotheimer, HSBCs regional president, for the metropolitan New York City, Pennsylvania and Florida branches. "We all need to help rebuild these companies and rebuild the city."

Given the magnitude of the event, the Rebuild New York program will offer expedited loan processing. "These loan applications will go to the top of the list," Kotheimer noted. HSBC has waived application fees and closing costs for all small business commercial loans excluding mortgages. Existing small business loan customers may also qualify for a skip payment option for current loans. This provides them with the option of paying interest only, principal only, or neither for a six-month period.

According to Kotheimer, the banks branch managers, branch staff, and small business relationship managers, including those based in branches located below 14th Street that and were closed for several days, began contacting customers as soon as possible after the disaster to see if they would have special needs resulting from the attack. As city, state, and federal agencies, such as the US Small Business Administration and New York City Business Development Council, finalize their relief programs, Rebuild New York will work with customers to determine if any of these relief programs can help meet their needs.

"Weve always prided ourselves on our strong customer service orientation," observed Kotheimer. "Over the past few days, our small business relationship managers have taken this to a new level."

Small businesses that were either physically or economically affected by the World Trade Center tragedy and are interested in a loan should contact either the branch or small business relationship manager at their local HSBC branch. They can also phone Robert Jussen, senior vice president, at (212) 525-7937.