It is true 76% of the businesses are back in Cedar Rapids, but many are far
from
being 100% back economically, emotionally and many face a greater
impact due to the global economic crisis after the Flood. Some
businesses may be in a temporary location or at a fractional level at
this point. The concern over the next two years is as many as
50% of businesses could fail, due to the historical failure rate
nationally of small businesses coming out of a disaster area.
There is news today of over $516 million of federal funds coming to Iowa. The last time federal funds came to Iowa, the funds allocated for administrative costs, approximately $6 million, were greater than the funds allocated for small business recovery.
An article in The Gazette dated June 9, 2009 by James Q. Lynch and Rick Smith titled Cedar Rapids likely to use new federal funds for buyouts The award of $516.7 million in federal funds to Iowa represents a “huge...
It is good news, but there are gaps in our community...
Perceptions may lead many to believe that the community is getting funds out to all that need help. But, as the Small Business Recovery meeting pointed out last night, the small business community is at high risk and very little federal funds are available to assist them on the scale of their economic hardships. Some businesses are simply not going to return and the risk is many will close their doors over the next two years.
Robin Tucker
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