85 Million in New Programs for Business Recovery
The state of Iowa received $85 million dollars of additional business recovery dollars. “This funding represents JumpStart2, and is the largest amount available to businesses to date,” states Theresa Bornbach, local Business JumpStart administrator. Bornbach continued, “Dollars are allocated at the state level and made available on a first come, first served basis. Cedar Rapids area businesses impacted by the disaster need to take full, immediate action of this funding opportunity.”
The $85 million dollars will be used to fund four new programs; a summary of each is below. These programs have been created with local input from Cedar Rapids and are designed to meet unmet needs of the business community.
Impacted businesses are encouraged to go to the Cedar Rapids Area Chamber of Commerce’s website for additional details, eligibility requirements and access to the application. Applications will be accepted until funds are exhausted and are subject to a duplication of benefits review.
Program 1: Loan Interest Supplement
This program will provide reimbursement assistance in the form of interest to businesses that have disaster related loans which were executed due to physical damage or economic injury. This includes loans given through the Small Business Administration (SBA) and chartered financial institutions. The maximum award is three years interest expenses (paid quarterly), up to $50,000.
Program 2: Expanded Business Rental Assistance
This program will provide reimbursement assistance to a business located in or planning to locate in business rental space that was physically damaged by the Flood of 2008. For the first time, this program expands the eligible reimbursement to also cover equipment, fixtures and inventory purchased as a result of the 2008 Flood. The maximum combined award for rental and equipment is $50,000; this includes six months of rental reimbursement and 50% of replacement cost for equipment.
Program 3: Commercial Rental Revenue Gap
This program was designed to assist with cash flow for commercial building owners to offset the loss of revenue from rental space that was physically damaged by the 2008 Flood. Awards will be calculated based on the base rent of the property lease at the time of the 2008 disaster. Maximum award amount is $25,000 per unit, up to 12 months of lost rental revenue.
Program 4: Residential Rental Landlord Business Support
This program is designed to assist with cash flow for residential rental unit owners and to offset the loss of revenue from rental space physically damaged by the 2008 Flood. Awards will be calculated based on the base rent of the property lease at the time of the 2008 disaster. Maximum award amount is $15,000 per business (based on business tax ID), up to 12 months of lost rental revenue. Applications for this can be found at www.corridorrecovery.org.