Linda Weiner, (919) 733-7977
September 28, 1999
Hunt Announces Advance Payment Program for Small Businesses Hurt by Hurricane Floyd
RALEIGH -- Gov. Jim Hunt today announced a program that may allow small businesses affected by Hurricane Floyd to receive as much as $10,000 as an advance on their U.S. Small Business Administration (SBA) Disaster Business loans, providing quick-turnaround cash to help get businesses back up and running.
The state Department of Commerce is coordinating the program with assistance from the SBA, Centura Bank and the Small Business and Technology Development Center, a business development service of The University of North Carolina system. Turnaround under the state program announced today is expected within four working days, providing a fast-track payment to qualifying businesses while they await the SBA payment that usually comes within three or four weeks of the application date.
"Businesses need immediate relief to begin recovering from Hurricane Floyd," Hunt said. "This program is the first step toward getting these business owners back on their feet."
Hunt said $2 million in state funds has been set aside to provide advances of up to $10,000 to those qualifying through both the SBA and the Business Advance Payment (BAP) program guidelines. The advances would not be charged interest, would be repaid directly from approved SBA business disaster loans, and would be directed first toward businesses in the most severely affected counties.
To participate in the program, business owners that suffered losses or damages should first obtain a SBA loan application from SBA (1-800-462-9029), a Federal Emergency Management Administration (FEMA) Disaster Recovery Center located throughout eastern North Carolina, or one of five Business Recovery Assistance Centers being operated by SBTDC and Commerce.
The Business Recovery Assistance centers are in Elizabeth City (252-335-3247), Fayetteville (910-486-1727), Greenville (252-328-6157), Rocky Mount (252-985-5130), and Wilmington (910-962-3744). They operate from 8 a.m. to 7 p.m. Monday through Saturday. Center staff is also available to travel to more than 20 outreach sites at community colleges, where they are available to meet with business owners affected by Hurricane Floyd.
The centers also provide free business management consulting services that include helping business owners assess the storm's impact, as well as minimizing loss, handling creditors and reconstructing financial statements. Once the approval process is complete, the business owner will receive a promissory note from Centura Bank for the advance.
"We're grateful to all the partners involved in making this advance payment program available," said state Commerce Secretary Rick Carlisle. "I encourage all eligible business owners to apply for available benefits to help them as individuals and as members of eastern North Carolina's business community begin the recovery process."
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