By CBJ News Staff
Marion Economic Development Corp. has partnered with three community banks to launch the Derecho Storm Business Recovery Loan Program. Initial lending partners include Farmers State Bank, Cedar Rapids Bank & Trust and Ohnward Bank & Trust.
Recent devastation from the Aug. 10 derecho storm combined with lingering challenges caused by COVID-19 has created financing needs for businesses of all sizes. Participating banks will offer low-interest loans to help impacted businesses.
“This program is modeled after similar efforts deployed earlier in the year by communities in the south who navigated the impacts of both COVID-19 and previous hurricanes,” said Nick Glew, president of Marion Economic Development Corp., in a statement. “While the recent storm has caused a significant insurance event, we believe additional funding gaps may still exist once companies finalize damage claims and navigate federal assistance programs.”
The program provides for a short-term (180 days) low interest (fixed rate, 3% APY) single-pay note. The APR will be offered through Nov. 1. It is intended to provide gap financing for businesses awaiting insurance, SBA or other funding in their long-term recovery.
Participating community banks will each extend the special loan terms and approve financing based on their own standard credit requirements including credit scores, historical financial information and cash flow. Eligible businesses must be located within the participating lender’s service area.
For more information about the program, visit medcoiowa.org/disasterloans. CBJ