Published: November 14, 2009 08:30 am      

Small businesses can tap into loans

Small businesses damaged by Hurricane Ike can get some much needed financial assistance thanks to the South East Texas Regional Planning Commission and SBAlliance Capital.

New businesses wanting to locate in an Ike affected area can also tap into the funds.

Mary Ann Reid, president of the Greater Port Arthur Chamber of Commerce, said the forgivable loans will help current businesses build back up to pre-Ike status, hire new employees and bring new life to hurricane devastated businesses.

“Hurricanes don’t hit individual cities,” Reid said. “They hit regions and this is for the Southeast Texas region.”

Southeast Texas was awarded $190 million in Hurricane Ike recovery funds in round one of the state allocation. Of the total, $1.9 million was earmarked to assist small businesses in their recovery from physical or economic losses sustained as a result of the disaster, according to a press release from the chamber of commerce.

Funds will be awarded as forgivable loans and recipients will not be required to pay back the funds as long as they remain in business for two years after the disbursement.

The maximum funding limit is $25,000 for existing businesses. Additional funds have been allocated to stimulate new businesses willing to locate to storm surge areas such as Bridge City.

Any business receiving funds will have 50 percent of the loan value forgiven after showing proof of operation for one year post disbursement and will have 100 percent of the loan value forgiven of operations continue for at least two years post disbursement.

The funds will be awarded on a competitive basis through SBAlliance Capital, which handled the Hurricane Rita disaster loan programs and currently administers the Small Business Administration 504 economic development loan program.

Applications and guidelines are available for download at www.sballiancecapital.org and www.setedf.org

Informational meetings will be conducted through the area chambers of commerce and economic development corporations. A hotline of frequently asked questions is available at 838-6586 extension 300.

Deadline to submit all information is Jan. 8, 2010.