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Flooded businesses ask state's help
(Gazette, The (Cedar Rapids, IA) (KRT) Via Acquire Media NewsEdge) Sep. 6--CEDAR RAPIDS -- Flooded and frustrated small businesses in Cedar Rapids gave state legislators their wish list on Friday.
The Cedar Rapids Small Business Recovery group told a half-dozen lawmakers at a meeting Friday that a special legislative session to deal with flood relief is long overdue.
"Every day a special session is not called sends a message that state government does not care," said Gary Ficken, president of Bimm Ridder Sportswear, a business that was flooded at 1600 Third St. SE, Suite A5.
Many of the group's members are frustrated because they are running out of money to rebuild and can't afford or don't qualify for Small Business Administration disaster loans.
Thirteen recommendations were presented during an hourlong meeting in a gutted building at A-1 Rental Equipment, 717 First Ave. SW, which has reopened since the flood. They included an immediate state contribution of $20 million to the Cedar Rapids Area Chamber of Commerce's forgivable loan fund for flooded businesses, and state incentives to use flood-impacted contractors to do repair work.
The group is asking for the diversion of $70 million worth of state funds originally slated for a new state office building in Des Moines to provide nointerest small business loans through the Iowa Department of Economic Development.
Despite the request to set up a zero percent loan program, the group's emphasis was not on more loans.
"To most small businesses, any kind of loan other than a forgivable loan is of no value," said A-1 Rental's Doug Schumacher. He said higher debt payments would simply force many businesses into bankruptcy later when they could no longer repay the obligations.
Lawmakers at the meeting indicated they would try to help, although they weren't making any promises.
State Rep. Tyler Olsen, DCedar Rapids, said the first step needed is a bipartisan agreement on a concrete list of issues that are financially responsible to address in a legislative session, and an agreement limiting debate during the session to those issues.
State Rep. Swati Dandekar, D-Marion, said the immediate needs of flood victims would be best addressed in a special session.
"The special session is not going to address the global problems," Dandekar said, adding that "we'll worry about April 1 forward in January." State Sens. Wally Horn and Rob Hogg and state Reps. Todd Taylor and Dick Taylor, all Cedar Rapids Democrats, also spoke at the meeting.
Hogg said there is reluctance in Des Moines to tap the state's rainy day fund, because many believe the flood devastation and slowing economy will reduce tax revenue.
The meeting was held as Gov. Chet Culver was announcing four steps to deliver more disaster relief aid to Iowans. One step is holding back $73 million in state appropriations this fiscal year for disaster relief.
-- Contact the writer: (319) 398-8317 or david.dewitte@gazcomm.com
Inside
-- The wish list given to state legislators by Cedar Rapids Small Business Recovery, 11B
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Copyright (c) 2008, The Gazette, Cedar Rapids, Iowa
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