Published: November 17, 2009 06:52 am      

Forgivable’ recovery funds being made available for small businesses

BRIDGE CITY — Businesses affected by Hurricane Ike may have another funding option at their fingertips.

The first in a series of meetings across a three county area was held Monday afternoon in Bridge City to provide information about Hurricane Ike disaster recovery loans for small business owners.

According to a press release by the Small Business Alliance Capital, Jefferson, Orange and Hardin Counties have been designated recipients of a $1.9 million Community Development Block Grant to be used toward economic recovery.

Funds will be distributed throughout the three county region as forgivable loans. This means 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 if operations continue for at least two years post disbursement.

The application deadline is Jan. 8, 2010.

“We are trying to help and stimulate the small businesses of Orange County, along with those in Jefferson and Hardin Counties, and get them back on their feet,” said Jim Rich, executive director of the Southeast Texas Economic Development Foundation. “We’ve tried to make the process as easy as possible.”

Businesses which submit completed applications and meet all eligibility requirements and committee review are eligible for $10,000 to $25,000, depending on maximum funding limits which are based on number of employees.

A business with one to three employees is eligible to receive $10,000, while a business with four to six employees is eligible for $15,000. A small business with seven to nine employees is eligible for a maximum funding of $20,000, while a business with 10 or more employees may be eligible for $25,000.



Criteria used to determine eligibility of funds are:

• For profit businesses located in Jefferson, Orange or Hardin Counties

• Creation or retention of one job satisfying LMI national objectives

• Business must have been operational prior to Hurricane Ike

• An individual credit score of 600 or higher

• Compliance with CDBG regulations

A special allotment is available for businesses willing to locate in a storm surge area. Approved loans may be used for marketing, working capital, equipment or site improvements.

A loan committee will consider all applicants on a comparative basis after a posted deadline and priority will be given to those applications with the highest simulative impact on the economy including job creation and retention.

All applicants will be required to provide the following information based on the loan amount requested.



All Applicants:

• Credit bureau report (within the past 30 days)

• Copy of driver’s license



Proof of business ownership requests above $10,000

• Copy of 2008 tax returns (personal and business)

• Profit and loss statement

• Balance sheet

• Accounts receivable/accounts payable



“Tell us what happened, tell us your story,” said Jessica Hill, Southeast Texas Economic Development Foundation business development manager. “We want to know what happened to you and what you’re going to use the money for.”

More meetings are on tap for the remainder of the week to provide information to those interested in the program.

A meeting will be held at 9 a.m., Wednesday, at the Port Arthur Library, 4615 Ninth Ave. Another Orange County meeting is scheduled for 1 p.m., Wednesday, in the Student Center of Lamar State College-Orange, 410 Green Ave. in downtown Orange.

Applications are available at the meetings, but can also be downloaded at www.setedf.org and www.sballiancecapital.org.

All applications must be submitted SBAlliance Capital, 1110 Park St., Beaumont, Texas 77701. All applicants should review applications before and after completion. Incomplete applications will not be reviewed.



For more information about the forgivable loan program, call 409-838-6586, Ext. 300.