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SBA administrator tours Tampa Bay area as call grow for Congress to approve new funds

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Published  October 17, 2024 4:47pm EDT
Small Business
FOX 13 News

Disaster relief for small businesses

Evan Axelbank reports

TAMPA, Fla. - The head of the Small Business Administration visited several Tampa Bay area businesses damaged by Hurricanes Helene and Milton.

Small businesses – and even homeowners – are eligible for low-interest loans to help them recover, but it's up to Congress to decide when those funds will arrive.

The owner of "Flan Factory" on Nebraska Avenue in Tampa said he is back in business after six days without power.

READ: Hurricane season is nearing the endgame, but what can we expect in its final weeks?

"We did lose all of our goods inside the restaurant with the refrigeration," said owner Jose Palau.

For six days, while they waited for power to be restored, their 14 employees lost out on their paychecks while their supplies dwindled. Palau is applying for about $20,000 in loans to patch the hole.

"Every little bit counts," he said. "If we could get, you know, anything back would be great."

SBA head Isabel Guzman visited stores in the area Thursday as she tries to spotlight the plight of business owners who saw their stores overcome by storm surge under Helene, then lost power under Milton. 

MORE: Hurricanes severely damage Pinellas Hope’s complex for homeless community

Sam Patel, who owns Beach Zone Ice Cream in St. Pete Beach, hosted her in his store, which is now gutted and without ice cream freezers that were damaged beyond repair.

"It's been a big impact on our lives right now, because that was our primary source of income and that this ice cream business runs our household," Patel said. 

He is applying for nearly $100,000 in loans to replace equipment and rebuild his store. Guzman said he's among 17,000 in Florida who have applied, but the $25,000 supply has run out. 

Until Congress approves more, loan applications can be filled out, but no payments can be made. The Biden Administration is urging Congress to go back into session before its scheduled November 12 meeting.

READ: Tampa councilman calls for investigation into University Area, North Tampa flooding: 'What went wrong?'

"We will continue to provide advice to Congress in terms of the demand and what we're seeing on the ground," said Guzman.

Patel said one hiccup has been the SBA's requirement that he get flood insurance. Guzman said applicants should note the difficulty of getting insurance in Florida, so that it can be taken into consideration, so they're not rejected outright. 

The loans are low interest, and Guzman pointed out the Biden-Harris administration made the first year of repayment interest free.

"Our survival is at stake, because we don't have any source of income at all," said Patel.

Businesses have until June to apply for loan programs that are in place for economic injury caused by the two storms.

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