Marion, IA – Marion Economic Development Corporation announces a partnership with three community banks to launch the Derecho Storm Business Recovery Loan Program. Initial lending partners include Farmers State Bank, Cedar Rapids Bank & Trust, and Ohnward Bank & Trust.
Recent devastation from the Derecho storm combined with lingering challenges caused by COVID-19 has created unique financing needs for businesses of all sizes. Participating banks will offer low -interest loans to help impacted businesses who may be in dire need of available gap financing.
“This program is modeled after similar efforts deployed earlier in the year by communities in the south who navigated the impacts of both COVID-19 and previous hurricanes,” said Nick Glew, President of Marion Economic Development Corporation. “While the recent storm has caused a significant insurance event, we believe additional funding gaps may still exist once companies finalize damage claims and navigate federal assistance programs.”
The program provides for a short-term (180 days) low interest (fixed rate – 3.00% APY) single-pay note. The APR (Annual Percentage Rate) will be offered for a limited time, through November 1, 2020. It is intended to provide gap financing for businesses awaiting insurance, SBA or other funding in their long-term recovery.
“FSB is honored to participate in the Derecho Storm Recovery Loan Program,” said Gene Neighbor, President & CEO of Farmers State Bank. “As a community bank, the success of our customers is paramount to the success of FSB. Our customers have all suffered during these trying times and this is just another way we can give back to the community and help ensure the success of our customers.”
James Klein, CRBT President added, “CRBT is proud to partner with MEDCO and other community banks to provide assistance to our local businesses. We know that there are many experiencing hardships as a result of the recent storm. As a community bank, CRBT feels it is our responsibility to help lead in our community’s recovery by offering programs such as this, as well as understand and help connect business owners to other available resources.”
“Together with MEDCO, Ohnward Bank & Trust is proud to support this special loan program to help our businesses get up and running again,” said Kevin King, Market President of Ohnward Bank & Trust. “This is one of the most challenging years that I can remember. By working together, I am confident that we will come out on the other side of these challenges stronger and better. I am proud to work alongside other community banks to accommodate the disaster recovery needs of the community.”
Participating community banks will each extend the special loan terms and approve financing based on their own standard credit requirements including credit scores, historical financial information, and cash flow. Eligible businesses must be located within the participating lender’s service area. Other banks and lending institutions are encouraged to consider extending the same terms to expediate the economic recovery of the community. Contact MEDCO President Nick Glew for more details.
For additional information about the Business Recovery Loan program, visit the Business Recovery Loans page on our website or contact any of the participating lenders.