Following the landfall of Hurricane Harvey, several Katy area banks have agreed to create a Business Recovery Loan Program for those impacted by this natural disaster across the Katy area.
“Amegy Bank, Integrity Bank and Westbound Bank will provide low-interest loans to help impacted business recovering from flood and wind damage,” said Lance LaCour, President/CEO of the Katy Area Economic Development Council.
The program is based on one which the Galveston Economic Development Partnership (GEDP) and Galveston Banks assembled following the devastation of Hurricane Ike in 2008. Four banks came together in creating a program that could provide low-interest, short-term gap financing to businesses negatively impacted by the storm. The program evolved into a national model for business recovery and today those lenders are restarting the program in Galveston following Hurricane Harvey.
The Galveston banks have passed this model on to other communities impacted by natural disasters including the Katy area.
“Today it only makes sense to restart this program for Hurricane Harvey and we welcome other banks throughout our region to participate in implementing this program within their respective impacted areas,” said Victor Pierson on Moody National Bank in Galveston.
The recovery program provides for a short-term (180 day) low interest (fixed rate – 4% APR) single-pay note. The APR (Annual Percentage Rate) will be offered for a limited time (through December 31, 2017) and is intended to provide gap financing for businesses awaiting insurance, SBA or other funding in their long-term recovery.
“We have partnered with Katy Area EDC and look forward to assisting businesses throughout the Katy area recover from the impacts of Hurricane Harvey,” said University of Houston Fort Bend County Small Business Development Center Director Joseph Decker.
Participating banks envision extending these loans throughout their customer base with the hope of other banks joining in and expanding the program throughout the impacted region, expediting the economic recovery of communities.
Participating banks can be contacted directly as well. Contact information for the participating banks can be found using the link below. Additional banks interested in participating can contact Katy Area EDC.
Katy Area EDC is a full-service private, non-profit, 501 (c) 6 economic development corporation focused on leading the economic development efforts of the Katy area to recruit, retain and expand new high quality, high impact companies, jobs and talent to improve the quality of life and place of Katy area residents.