Grand Canyon flash flood relief: SBA opens disaster loans for small businesses
SBA offers up to $2M in disaster loans after Grand Canyon flash floods
Small businesses and non-profits affected by Grand Canyon flash flooding can now apply for low-interest SBA disaster loans. FOX 10's Megan Spector reports.
GRAND CANYON, Ariz. - Arizona small businesses and nonprofits affected by late-summer flash flooding in the Grand Canyon can now apply for financial relief.
The U.S. Small Business Administration has approved low-interest disaster loans for impacted businesses.
The backstory:
For small businesses in the Grand Canyon, it has been one hit after another. After the Dragon Bravo Fire devastated local business last summer, the recent flash flooding and trail closures that followed have left owners scrambling for a lifeline.
"That was a once in a hundred-year fire. And it’s been a once in a hundred-year flood. And we’ve had them back to back," Larry Innes said.
Deadly flash flooding ripped through the Grand Canyon in late August. Now, federal disaster loans are available for business owners dealing with devastating financial losses.
"Last year we didn’t use it, we were able to get through without it, but this year, I mean, being hit back to back, we don’t have much choice," Innes said.
Grand Canyon flash floods expose concerns over rushed reopening post-fire
A former park leader and local employee express concern that economic pressure compromised safety following the Dragon Bravo Fire and recent flooding.
Local perspective:
Innes owns Kaibab Lodge, a family business just a few miles outside the park’s North Rim entrance. While the lodge itself has remained open, trail closures have caused a wave of cancellations.
"The rim-to-rim hiker comes in so hard in advance. They just book us out, and we probably lost 80% of our reservations. The dollar amount is a lot," Innes said. "It’s in the millions of the cost to us."
The SBA issued the disaster declaration following a request from Gov. Katie Hobbs on Oct. 8. These loans offer up to $2 million to help cover operating expenses, payroll, and bills, even if a property did not suffer physical damage.
"Let’s face it. These businesses, nonprofits, I mean, people are hurting. And they need some support and that’s one of the ways the office of disaster recovery provides that support," James Hodgman, with the U.S. Small Business Administration, said.
"We still have to pay it back. It’s money I’ve lost. I mean if it’s over a million dollars, I still have to pay that back," Innes said.
Grand Canyon flash floods trigger cancellations for businesses near North Rim
Businesses outside the North Rim are facing mass cancellations during their busiest season following the deadly flash flooding last week.
What's next:
Still, it's critical help for businesses struggling to keep up with ongoing expenses.
"I’ve got 15 coaches and vans out here that are just sitting. I have to still pay for those. I’ve got employees that are up here. I still have payments on owning the business. All of that keeps going on so that would be used towards that and making sure we get into next year," Innes said.
What you can do:
Businesses have until July 13 to apply for the loan. Click here for more information about the loans.
The Source: Information in this report was gathered from Larry Innes, owner of Kaibab Lodge and the U.S. Small Business Administration.