Hurricane Harvey Business Recovery Loan Program Established

Sept. 7, 2017

The devastation from Hurricane Harvey has prompted Galveston banks to reinstate a Business Recovery Loan program that proved successful following Hurricane Ike. “HomeTown Bank, Moody National Bank and Texas First Bank will again provide low-interest loans to help impacted businesses recovering from storm damages that are in dire need of available gap financing,” said Jeffrey Sjostrom, President of the Galveston Economic Development Partnership (GEDP).
Victor Pierson of Moody National Bank stated "Following the success we achieved after Hurricane Ike, we passed this model on to other communities impacted by natural disasters. Today, it only makes sense to restart this lending program for Hurricane Harvey. It is an immediately useful recovery tool and is designed to sustain businesses throughout this difficult time. The model is fully inclusive and any bank that wishes to participate is welcome to join and help grow this important program."
Following the devastation of Hurricane Ike in 2008, these Banks came together in creating a program that could provide low-interest, short-term gap financing to businesses negatively impacted by the storm. This program evolved into a national model for business recovery and today, these lenders are pleased to announce that they stand united to once again assist businesses impacted by Harvey.

“This loan program proved to be an asset after the devastation of Hurricane Ike and we consider ourselves fortunate to be in a position to be able to offer it again, during this challenging time, as our community recovers from Harvey," said Jimmy Rasmussen of HomeTown Bank. "We want to help local businesses get back on their feet and get our customers back in their homes any way we can.”

This 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 Dec. 31, 2017) and is intended to provide gap financing for businesses awaiting insurance, SBA or other funding in their long-term recovery.

Participating banks envision extending these loans throughout their customer base with the hope of other banks joining in for expanding the program throughout the affected region, expediting the economic recovery of our communities. "Texas First Bank has banking centers in most of the flood affected areas and I encourage other community banks to join me in providing this valuable program," said Chris Doyle of Texas First Bank.

For further information about the Hurricane Harvey Business Recovery Loan program, call the GEDP (409-770-0216) or contact any of the participating banks.