Asheville Mobilizes for Economic Recovery After Severe Flooding

Asheville Faces Recovery After Devastating Floods

Asheville is picking up the pieces after a recent flooding disaster that turned the bustling city into a challenging landscape for its small businesses. On October 8, SBA Administrator Isabel Casillas Guzman visited some of the areas hit hardest, shedding light on the federal resources available to help restore the local economy.

Understanding the Power of SBA Loans

Standing outside the popular 12 Bones Smokehouse, which saw severe damage from floodwaters, Guzman emphasized the flexibility and low-interest nature of the small business loans offered by the Small Business Administration (SBA). Business owners can apply for loans up to $2 million, designed to assist with everything from property damages to business interruptions. The first year of these loans even comes interest-free!

In addition to business loans, the SBA provides home loans of up to $500,000 at rates as low as 2.8 percent, and they also offer $100,000 loans specifically for renters. Guzman understands that many business owners are still grappling with the aftermath of the flood—sifting through mud and ruined inventory—and may not feel ready to take on more debt. “It’s all about calculating what works for you,” she said reassuringly.

Voices of Local Business Owners

At the meeting, 12 Bones owners Bryan and Angela King expressed their gratitude for Guzman’s visit. However, they admitted to being in shock and focused mainly on their employees’ welfare. While their south location in Arden has reopened, the River Arts District location remains closed for the foreseeable future due to extensive damage from rising waters.

“There’s just so much to assess and figure out,” Bryan shared, highlighting how they do not own their buildings and are now talking with their landlord about feasible next steps. Though they are not entirely closed off to the idea of taking out an SBA loan, they need to “run some numbers” first.

Repair Plans in Biltmore Village

Meanwhile, in picturesque Biltmore Village, co-owners Joe Scully and Kevin Westmoreland of The Corner Kitchen restaurant were also on hand to discuss recovery. Their building, rich in history, flooded significantly, reminiscent of previous natural disasters. However, unlike the Kings, Scully and Westmoreland have already decided that an SBA loan will be a key component of their recovery strategy.

“We have the applications already filled out,” Scully said confidently, estimating their damages could be between $500,000 and $1 million. They are hopeful for support from insurance coupled with potential SBA funds.

The Reality of Recovery: A Family Business Perspective

Not everyone feels ready to take out loans. Just a short drive away, at the Guitar Bar, owners Mark and Julia Goldthwaite reported that their establishment was a total loss due to flood damage. With 12 feet of water inside, they too are dealing with their own set of challenges, already burdened with COVID-related loans.

“We need financial support, not more loans,” Mark emphasized, while Julia pointed out the prohibitive costs of flood insurance for small businesses like theirs. They have lost everything and are currently trying to sustain themselves on personal funds.

Looking Ahead: The Road to Recovery

Property owner Eddie Dewey, who also owns several warehouses in the River Arts District, expressed openness to exploring SBA loans as part of a broader financial strategy to rebuild. He envisions a mix of private financing, government loans, and potential FEMA disaster relief grants to support recovery efforts.

Ultimately, Guzman remains optimistic about the possibility of local business owners leveraging the SBA’s low-interest loans as a tool for recovery. She stated, “We’re really about filling gaps in the marketplace of insurance to ensure communities can stabilize economically as quickly as possible.”

A Community United

As Asheville navigates this challenging chapter, its resilience shines through. Local business owners are committed to rebuilding, restoring employment, and preserving the unique culture of their city. With support from federal programs and the unyielding support of the community, Asheville aims to rise again.