The Galveston County Daily News

GALVESTON — The Galveston Economic Development Partnership has begun the second phase of its drive to help island businesses recover from Hurricane Ike, providing working capital loans to four companies.

Loans were presented last week to DiBella’s Italian Restaurant, Chalmer’s Hardware, Island Flowers and El Jardin Mexican Restaurant.

“These loans are the next step in our continuing efforts to expand Galveston’s economic and tax base,” partnership chairman Richard Ferdinandtsen said.

“Within days of landfall, the GEDP facilitated an organized initiative with Galveston’s local banks to lend millions of dollars to help local businesses with Hurricane Ike cleanup and emergency repairs; this second phase provides an additional resource to further assist the Galveston business community.”

The 10-year working capital loans carry a fixed 5 percent interest rate with no additional fees or closing costs. Funds can be used to purchase inventory, replace equipment, pay employees, improve facilities or for a variety of other purposes.

The loans are funded by private donations to the Galveston Business Recovery Fund, begun by the Galveston Economic Development Partnership and administered by the Houston-Galveston Area Council.

“DiBella’s, Chalmer’s, El Jardin and Island Flowers are the kinds of small businesses that are the heart and soul of any local economy,” partnership President Jeffrey Sjostrom said.

“They fit our lending requirements: for-profit companies that were in business on the island prior to the hurricane and they are committed to coming back.

“We can only lend money we have on hand, and we need more contributions. We have verbal commitments of up to $500,000, and there is so much more that can be done with additional support.”

The Galveston Business Recovery Fund is a revolving loan fund, through which loan payments will be used to fund new loans in a perpetual cycle.

The third phase in the business recovery effort will be a larger regional revolving loan fund capable of helping larger companies with financing for major projects, Sjostrom said.

For information on or to contribute to the fund, call the Galveston Economic Development Partnership at 409-770-0216.