The U.S. Small Business Administration has informed the Sun Valley-Ketchum Chamber & Visitors Bureau that 16 local businesses have been approved for $675,000 worth of Economic Injury Disaster Loans.
The loans were made possible following the Castle Rock Fire, which began Aug. 16 along Warm Springs Creek and then inundated the Wood River Valley with smoke, firefighters and trepidation for about three weeks during one of the area's biggest tourism seasons. The low-interest loan program is intended to address the financial hardship businesses face due to the loss of tourism.
The Small Business Administration closed the doors of its post-Castle Rock Fire office in Hailey Sept. 20, but will accept loan applications from businesses impacted by the fire through June 11, 2008.
"This is a great reminder that many of our local shops and restaurants are still feeling the effects of the Castle Rock Fire, and as always it is important to shop local," said chamber Executive Director Carol Waller. "During the holiday season, please remember to visit your neighbors and support their businesses."
In September, the chamber sent an Economic Injury Declaration for Blaine County to the Small Business Administration. Shortly after, representatives from the federal agency arrived to help local businesses apply for the loans.
"The application period is still open," said Mark Randle, an SBA communications specialist based in Sacramento, Calif. "People can get in touch with us via the Internet or our 800 number and submit those applications."
During the two-week period the office was open in Hailey, from Sept. 13 through Sept. 27, 113 applications forms were issued to area business owners. Of those, 35 completed applications were returned.
Randle said the applications are dealt with on a first-come, first-served basis. They are forwarded to the agency's processing center in the order they're received.
"It's a loan for working capital for overhead needs that the business is not able to pay as a result of the fire," Randle said. "That could be rent, payroll, those types of things. They're just for the loss of the working capital that resulted from the loss of sales."
The loans are offered at 4 percent interest and are issued using treasury funds through the SBA. Loan terms can be for up to 30 years, and maturity is based on the financial condition of the affected business.
Area businesses affected by the fire are still able to apply for the loans by contacting the SBA Disaster Assistance Customer Service Center at (800) 659-2955 or www.sba.gov/services/disasterassistance.