Requests for aid pour in to FEMA

Small businesses struggling to get back up and running after the hurricane can get help from a variety of sources -- but time will be the problem for most needing cash right away.

Nearly 2,000 Central Florida businesses registered with the Federal Emergency Management Agency by Wednesday morning, positioning themselves to apply for low-interest loans through the Small Business Administration to get back on their feet.

Orange County businesses led the area, with 640 companies registering. Lake County had only two.

“If there’s an uninsured or underinsured loss, you’d be eligible for a low-interest loan,” SBA spokesman Frank Adinolfe said.

But it will probably take an average of 40 days from the time a company applies for a loan before it sees any money.

If one already has a relationship with a bank, it may be quicker to get a new loan or an increase in an existing credit line than to go to the SBA, but bank loans will likely take awhile, too.

Because Central Florida counties have all been included in the federal disaster area, SBA loans are likely to be the lowest-cost option. The interest rate for disaster-area loans is just 2.9 percent annually.

Businesses of any size in the disaster area can borrow to repair physical damage or replace ruined equipment, Adinolfe said.

In addition, those that qualify as small businesses under the government’s normal guidelines also can get “economic injury loans.”

Adinolfe could not provide specifics of the government criteria, but in the past a rule of thumb has been that companies in most industries with 500 or fewer employees qualify as small businesses.

The maximum loan or combination of loans for a single borrower is $1.5 million. But the money must be used to replace or repair hurricane-related losses, Adinolfe said.

The first step for any small business seeking help is to register with the Federal Emergency Management Agency -- FEMA -- at 1-800-621-3362. After that, the business owner will receive an application in the mail or can copy one from the SBA’s Web site.

FEMA plans to open its first two emergency offices in Central Florida this morning in Volusia and Polk counties. They are at the Sunshine Park Mall, 2400 S. Ridgewood Ave., South Daytona Beach, and the Eagle Ridge Mall, 451 Eagle Ridge Drive, Lake Wales.

Once applications are completed and returned to the SBA, “We strive to have an answer within 20 days,” he said. After that, the borrower could expect the first disbursement of cash five days after approval of the loan.

For a business with an existing banking relationship, the first stop might be with its regular banker.

“You ought to immediately go into the bank and talk about the situation,” said Donald J. McGowan, president and chief executive officer of BankFirst, a community bank based in Winter Park. He said his bank would be willing to increase most customers’ lines of credit given the circumstances.

At Bank of America, the president of the Central Florida market, Ed Timberlake, said the company is offering a reduced rate for customers affected by the hurricane, though he said the amount would vary, depending on a range of other credit considerations.

As for how long customers will have to wait for an answer, he said, “We’re talking days or weeks, not months.”

Despite the range of loans available, some business people, such as Marc St. Pierre, owner of a Hungry Howie’s Pizza franchise on South Orange Blossom Trail in Orlando, cannot wait.

St. Pierre, out of business since hours before the hurricane struck Friday, reopened for the first time Wednesday. But not before losing about $1,000 worth of food because of failed refrigeration and missing out on anywhere from $5,000 to $10,000 in business.

His emergency financing will have to start much sooner than waiting for a loan, he said.

“To make my payroll, I’m not going to pay my food bill” for a while, he said. And he said he will pay his 10 employees on Saturday instead of the usual Friday, so he does not have to cover those checks until he has the proceeds from weekend sales.

Barry Flynn can be reached at 407-420-5240 or bflynn@orlandosentinel.com.