Agency declares disaster in Sisters area

Sisters area business hit hard by economic losses from the B&B Complex Fire now have access to loans from the U.S. Small Business Administration (SBA).

On Friday, September 26, SBA Administrator Hector V. Barreto approved Governor Ted Kulongoski's request for an economic injury disaster declaration for Sisters.

SBA's action makes available low-interest disaster loans to small businesses directly affected by those fires that caused the closure of Highway 20 for approximately two weeks.

SBA Economic Injury Disaster Loans (EIDLs) are now available to small businesses in Deschutes and Jefferson Counties, as well as the contiguous counties of Crook, Harney, Klamath, Lake, Lane, Linn, Marion, Wasco and Wheeler.

Small businesses may qualify for EIDLs of up to $1.5 million to help pay their fixed debts, payroll, accounts payable and other bills that can't be paid because of the disaster's impact.

The exact parameters of the loans are unclear, according to Ric Nowak of the Sisters Area Chamber of Commerce.

For example, it is not yet clear whether the loans will cover only losses taken during the period of the fire or if they will also cover losses if slides close the highway during the winter. And Nowak does not know whether businesses can establish what he called an "up-to line of credit" through the SBA program.

"Those are questions that are yet to be answered," he said.

An SBA representative will be in Sisters this week and for the next two to three weeks to help businesses negotiate the process of applying for EIDLs.

According to Nowak, Peter Storton has donated office space for the SBA representative at his RE/Max Town & County Realty offices at 178 S. Elm Street (at the corner of Elm Street and Hood Avenue).

According to Philip Gentry, Portland District Director, SBA, the office will be closed on Monday, October 13 in observance of Columbus Day. The hours of operation will be Mondays through Fridays from 9 a.m. to 1 p.m.

"SBA will answer specific questions about how a disaster loan may help each victim recover from the disaster, and will provide one-on-one assistance in completing their loan applications," Gentry said.

There were 25 businesses that initially expressed interest in the program as part of the process of obtaining a disaster declaration, Nowak said. He does not know how many businesses will actually take out loans.

"I don't know at the end of the day how many people will avail themselves of this thing," he said.

Alfred E. Judd, SBA Disaster Area Director, said "Eligibility for these working capital loans is based on the financial impact of the disaster only, and not on any actual property damage. These loans have an interest rate of 3.1 percent and a maximum term of 30 years, and are restricted to businesses without the financial ability to offset the adverse economic effects of the disaster."

Businesses unable to visit SBA's disaster office may obtain information and loan applications by writing to SBA at P.O. Box 13795, Sacramento, CA 95853-4795, or by calling toll-free at (800) 488-5323.

The deadline to file an application is June 28, 2004.