Central Vermont is still reeling from the freak storm waters that caused landslides, flooded cellars to the brim, ripped through pavement and dumped mud onto houses and city streets. Though cleanup efforts are largely complete, a number of businesses in Barre and Montpelier have been temporarily closed because of permanent damage to buildings, equipment and inventory.
Gov. Peter Shumlin announced an emergency loan plan on Wednesday that will enable businesses damaged by floodwaters to apply for as much as $25,000 in very low-interest loans. Shumlin has asked the Emergency Board to approve a $1 million appropriation that will be used to leverage an additional $2 million through the Vermont Economic Development Authority.
“This is not a hand out, it’s a hand up to businesses that were flooded at a time when business is tougher,” Shumlin said.
The $3 million in loan funds would be made available to businesses immediately after the appropriation is approved on Tuesday, officials said. The loans would be interest-free the first year and would cost borrowers 1 percent a year for the subsequent five years.
“I read in the newspaper that someone said why is it in America we send taxpayer money to every country in the world and we send billions to Wall Street when they’re in trouble and when small businesses on Main Street are in trouble, we do nothing,” Shumlin said, quoting his constituent. “When I read that I said to my staff we can do better.”
The money will be distributed on a first come, first serve basis. The deadline for applications is July 15.
Shumlin said he is certain the Emergency Board will approve the plan. As governor, Shumlin is chairman of the board, which includes the chairs of the Legislature’s budget and tax committees.
Though Shumlin and members of his administration couldn’t say how many businesses were damaged in the May 26 flood, if all of the money is distributed and each business asks for the maximum amount, 120 businesses and nonprofit organizations could take advantage of the loan program. Many more businessowners would be eligible if less money is requested. The program will also be available for businesses affected by the Lake Champlain flood, which began on April 23.
Barre Mayor Thom Lauzon, Montpelier Mayor Mary Hooper and Berlin selectboard chair Susan Gretkowski thanked the governor for making the funds available immediately. All three said that businesses in their communities couldn’t wait for three months for Small Business Administration loans. Lauzon, a Republican, described Shumlin’s response as “great leadership” from a “can-do” governor.
“We need the money now to make sure that businesses don’t go under as a result of this,” Lauzon said.
Gretkowski said she believed the federal government issue a disaster declaration for Central Vermont, giving citizens access to federal relief, but she said the upfront loans are needed because the federal money “could take a while.”
The $1 million from the state’s General Fund will come from surplus revenues. Shumlin told reporters that the revenue projections are ahead of the state economic forecast.
Shumlin made the announcement to the thrum of compressors in Dente’s, a small market in downtown Barre that was flooded on May 26. Just two weeks later the small shop, which was founded 104 years ago, was back in business, though with at least one cooler that was damaged beyond repair. Shumlin’s portable lectern was perched on another refrigerator that during the flood was floating in the store.
Other businesses weren’t so lucky. The Times Argus, for example, sustained $2 million in damages to the low-slung brick building on Main Street that housed the printing press, the newsroom, advertising staff and the business office. In addition the printing press would cost $1.7 million to replace, according to a story in the newspaper that was published on Wednesday. Since the flood, the newspaper has laid off 25 people.
To apply for a loan, go to www.veda.org or call 802-828-5627 begin_of_the_skype_highlighting 802-828-5627 end_of_the_skype_highlighting.
