WASHINGTON, DC— U.S. Senator Bob Casey (D-PA) today sent a letter to the U.S. Small Business Administration (SBA) urging the federal agency to protect small businesses in Monroe County by maintaining the county’s status as a Historically Underutilized Business Zone (HUB Zone). Local officials have recently expressed concern that the county could lose its HUB Zone designation in the near future.
“Such an outcome would be devastating in a county that has yet to fully recover from the economic downturn,” wrote Senator Casey in his letter to SBA Administrator Karen Mills. “This designation has been key to promoting economic growth in the Pocono Mountains and its continuation is crucial to spurring an economic recovery in the county.”
In his letter, Senator Casey notes that Monroe County’s unemployment rate of 9.6 percent remains higher than the Pennsylvania average, which stands at 8.5 percent.
“Without the HUB Zone designation, the unemployment rate will likely increase as these firms either eliminate jobs or relocate out of the area,” Senator Casey wrote. “Moreover, the HUB Zone designation has played a key role in the county’s effort to attract new firms to locate in its business parks and other available properties. A loss of this designation will severely hamper these efforts.”
The full text of the letter is below.
Dear Administrator Mills:
I write today regarding the status of the Historically Underutilized Business Zone (HUB Zone) designation for firms in Monroe County, Pennsylvania. This designation has been instrumental in promoting economic growth in the Pocono Mountains and its continuation is crucial to spurring an economic recovery in the county.
Local officials have expressed concern that Monroe County could lose its HUB Zone status in the relative near future. Such an outcome would be devastating in a county that has yet to fully recover from the economic downturn.
Monroe County’s unemployment rate of 9.6 percent remains higher than the average in the Commonwealth, which stands at 8.5 percent. Local officials report that approximately 100 businesses in the county benefit from the designation. Without the HUB Zone designation, the unemployment rate will likely increase as these firms either eliminate jobs or relocate out of the area. Moreover, the HUB Zone designation has played a key role in the county’s effort to attract new firms to locate in its business parks and other available properties. A loss of this designation will severely hamper these efforts.
I recognize that current law requires that a nonmetropolitan county meet certain income and unemployment rate criteria. In this case, it is important to note that statistics relating to income and employment may not accurately reflect Monroe County’s true economic situation. This is due in part to the fact that Monroe County continues to experience a population boom that has distorted economic statistics in the county.
The median household income may be inflated in part because of the high number of individuals who commute to the New York metropolitan area. In many cases, these commuters earn wages that are much higher than those earned by individuals who are employed in Monroe County. The commuter population also skews the county’s unemployment rate. The unemployment rate for the non-commuter population is much higher than the county’s current rate.
Those residents living and working in Monroe County generally earn less and are more likely to be unemployed. These residents will be hardest hit if HUB Zone designation does not continue because they are most likely to seek jobs in the county. In your reply to this letter, please provide a status report on Monroe County’s participation in the program. Given the unique circumstances in Monroe County, I want to work with you to ensure the county’s continued participation in the program for years to come.
Thank you for your consideration of my views.
Sincerely,
Robert P. Casey, Jr.
United States Senator
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