As the number of firefighters camping near River Run continues to dwindle, the negative impact from the Castle Rock fire is moving from residents' lungs to business owners' pocketbooks.
Pursuant to the U.S. Small Business Administration's disaster declaration for Economic Injury Disaster Loans two days earlier, an SBA office opened at the Idaho Department of Labor on Main Street in Hailey at 8 a.m. on Thursday, Sept. 13, where it was immediately obvious that its services were in demand.
With the cancellation of Wagon Days, traditionally the greatest influx of dollars into the northern Wood River Valley during summer, and a significant drop in the amount of visitors to the area during the incident, it's no wonder the local economy is beginning to realize the pinch.
"With the fire, everyone left town," said Kinsgley Murphy, owner of Rickshaw restaurant in downtown Ketchum, during a recent interview. "What would normally be our busiest time turned out like slack."
Because of the economic effects of the fire, Murphy, and approximately a dozen other business proprietors headed to the SBA office on its first morning to take advantage of federal low-interest loans. The office is offering loans of up to $1.5 million at an interest rate of 4 percent with terms up to a maximum of 30 years.
"This is a great help," Murphy said after speaking with SBA Customer Service Representative Peter Cobb. "The requirements are pretty simple. I should be able to convert my other debt at 8 percent and reduce my costs by half."
While applicants aren't guaranteed to receive the amount requested, this is determined by loan officers who look at previous years' tax records and balance sheets to calculate potential losses, SBA Communication Specialist Kevin Wynne said their role is to keep businesses operating smoothly.
"We don't want to end up hurting businesses further by having them become overextended," Wynne said. "We will provide what they need to run their businesses, and they can always come back and apply for another loan."
Wynne said that the SBA aims for a 21-day turnaround for loan applications and that he expects an approval rate of more than 50 percent, the latter depending on the financial conditions and current debt load of applicants.
The SBA office in Hailey will remain open until Thursday, Sept. 27, and then loan applications will continue to be available by phone until June 11, 2008.
"People might not know they're in trouble until they see their bottom line receding," Wynne said. "It could take three or four months to feel the result from a cancelled Wagon Days."
Wynne said after a very busy first day, he expects around seven or eight applicants a day and perhaps another bump on the office's final day in Hailey.
Like Murphy, Dina Madsen, owner of Ketchum Bed & Bath, visited the office in its opening hours, spending around 25 minutes to speak with a SBA representative to find out details of the process and pick up an application.
"I'm absolutely relieved that this option has become available," Madsen said, adding that she'll complete the application by tomorrow. "It was an extremely stressful time during the fire. Wagon Days is our last booster before the end of the year."
Madsen said that a loan would help her cover payroll and rent, as well as allow her to buy necessary inventory for Christmas. Although she said she's slightly worried that the loan officers might not include incidentals, such as having to pay for extra staff if she gets sick, into the calculation, Wynne said that they try to make sure business owners get as much as they need.
"We're here to make their businesses whole again," he said.
Rickshaw restaurant owner Kingsley Murphy stands in front of the SBA?s office that opened on Thursday, Sept. 13, at the Department of Labor on Main Street in Hailey. Murphy says that in addition to the cancellation of Wagon Days, inordinately slow business caused by the fire has him looking for financial assistance to help pay off higher interest loans.
Express photo by Jon Duval
