Banks offer aid to storm-damaged companies

It moved from its original 1,000-square-foot space into a new 4,000-square-foot facility in October 2005, and revenues jumped from $120,000 in 2005 to nearly $1 million in 2006.

But the company ran into an opponent it had never banked on: Mother Nature.

The Jan. 12–14 ice storm shut down the company for eight days, resulting in what owner Matt Hyust estimates is a loss of $32,000 in production, plus additional revenue setbacks in rescheduled projects and lost potential customers.

That kind of loss is tough for any business, but it’s especially hard on a company such as H&H, which employs 12 people.

“We’re a newer business,” he said. “Working capital is basically nil, so losing eight days in production due to an ice storm is not a good thing for us right now.”

Collecting information

The U.S. Small Business Administration is a possible source of help for small businesses struggling in the aftermath of the storm.

June Teasley, communications director for SBA Region 7, said that physical disaster loans and economic injury disaster loans could be available from the SBA if a presidential declaration for individual assistance is made, or if a declaration comes from the SBA itself. Either way, affected counties must clearly demonstrate a need for government assistance.

To that end, the SBA has requested that affected businesses contact local chambers of commerce – particularly those in Springfield and Joplin – so that those chambers can collect information and relay it to the State Emergency Management Agency, which can then request a presidential disaster declaration to include individuals and businesses. Other chambers of commerce in the area are encouraged to refer businesses that need help dealing with the storm to the Springfield or Joplin chambers.

Michelle West, communications director for the Springfield chamber, said it’s important to understand the chamber’s role in the assessment process.

“We are strictly serving as a clearinghouse to collect information and forward it on,” she said. “We’re a data-gathering resource only.”

SBA’s help would go to businesses such as H&H Woodworking, which had originally contacted the Republic Area Chamber of Commerce after the storm. Owner Hyust said the storm made him assess the company’s backup systems, and he has gotten prices on generators to run his company during any future power outages.

“We found one in Texas and one in Chicago,” Hyust said. “They start at $10,000, so that’s a whole other expense.

“But if it saves us $40,000, it’s a drop in the bucket.”

Help from the banks

Hyust said he will be able to manage with the losses incurred by the storm – he borrowed $40,000 from in-laws – but others might not be so lucky.

Several financial institutions are offering temporary assistance for businesses that took a financial hit from the storm.

Mid-Missouri Bank is offering unsecured loans up to $1,200 for individuals or businesses impacted by the storm. The loans, according Brad Weaver, president of the Republic branch, come with no origination fees and an approximate interest rate of 5.5 percent.

The loans are intended to be used for debris removal and other storm repairs and expenses, though Weaver said the bank will not be a stickler for proof in this case.

“They just need to tell us that they had damage,” he said. “We’re not going to be picky.”

U.S. Bank is offering loans to those who own businesses or reside in one of the affected communities. Businesses can apply for an installment loan of up to $100,000 at a discounted rate with no fees. Actual rates will vary depending on loan amounts and borrowers.

Tim Ricke, Springfield-Branson district manager for U.S. Bank, said the program is an extension of the bank’s normal small-business lending program.

Ricke said the loans would be available in secured or unsecured forms.

Business Information Collection

Businesses that were affected by the ice storm and wish to submit their information to the U.S. Small Business Administration can download a form from the Springfield Area Chamber of Commerce Web site, www.springfield

chamber.com. The form should be filled out and e-mailed, along with the business name and contact information, to sbahelp@springfieldchamber.com.

The chamber will forward submitted information to the SBA as part of the administration’s damage assessment process.[[In-content Ad]]