SBA continues loan support for Easton businesses after February fire

While its temporary office is now gone, the Small Business Administration is still helping the businesses and residents that were impacted by a devastating February fire in Easton, said Debbie Jakala, spokesperson for the organization. 

In February, a fire severely damaged the Hotel Hampton on the 400th block of Northampton Street, also impacting nearby businesses including a small market and barbershop and even the nearby State Theatre, which had to cancel a performance because of a loss of power because of the fire. 

The SBA set up shop in Easton City Hall to meet with business owners and residents that were impacted by the blaze, whether they needed help funding reconstruction, lost inventory or lost business. 

The hotel was a single-room, long-term occupancy hotel that was built in the 1800s. Most of the 40 individuals staying there were using the hotel as their residence. 

The damage caused by the fire has had an ongoing impact on the larger business community. 

“Business on the street feel like it’s hurting them because it’s a disaster scene,” Jakala said.  

Area businesses even organized a Walk Up the Block event to encourage people to patronize those businesses that are operating nearby where the fire occurred. 

But Jakala, said it’s the SBA’s goal to provide businesses and residents with the funds they need to rebuild their business and bring back the community there. 

Among the loans available are: 

Loans to businesses to repair or replace disaster-damaged property owned by the business, including real estate, inventories, supplies, machinery and equipment. Businesses of any size are eligible. Private, non-profit organizations such as charities, churches, private universities, etc., are also eligible.  

Economic Injury Disaster Loans (EIDL) – Working capital loans to help small businesses, small agricultural cooperatives, small businesses engaged in aquaculture, and most private, non-profit organizations of all sizes meet their ordinary and necessary financial obligations that cannot be met as a direct result of the disaster. These loans are intended to assist through the disaster recovery period.  

Home Disaster Loans – Loans to homeowners or renters to repair or replace disaster-damaged real estate and personal property, including automobiles. 

Jakala aid loans of up to $2 million are available to businesses with physical damage to their structure and inventory, but ongoing business loss is also a concern. 

“The barbershop hasn’t had any clients since the fire. He’s had an economic injury because he can’t serve his clients,” Jakala said. 

Many of the loans, all of which are low-interest rate loans below commercially available loan rates, but some also have no interest charged if paid back within 12 months. 

Jakala noted that businesses and individuals impacted by the fire have until May 4 to file for a loan to cover physical damage costs and until Dec. 4 for economic impact. 

She said there is a reason the deadline for economic impact is so far out. 

“Often businesses won’t realize they suffered an economic loss until months later,” Jakala said. 

For example, the market was patronized heavily by the residents of the hotel, who have now been displaced. That is taking away a key customer base and the revenue they brought in.  

To be eligible for a loan, applicants must have a credit history acceptable to SBA and show the ability to repay all loans. 

The law authorizes loan terms up to a maximum of 30 years. However, the law restricts businesses with credit available elsewhere to a maximum 7-year term. SBA sets the installment payment amount and corresponding maturity based upon each borrower’s ability to repay.  

Borrowers may be required to provide collateral. 

Applications for disaster loans may be submitted online using the MySBA Loan Portal at https://lending.sba.gov.