FOR IMMEDIATE RELEASE

June 30, 2006

DAVE HAMILL, DEDO
(302) 672-6824

DOVER - The Delaware Economic Development Office (DEDO) is offering no-interest loans to Delaware small businesses that were adversely impacted by June's floods.

The loans, which will be available for up to $500,000, are intended to help small businesses repair or replace damaged property and deal with flood-related loss not covered by insurance.

"Many Delaware companies sustained significant damage and loss from the recent floods," said Governor Ruth Ann Minner. "The state is pleased to offer this loan assistance to help the affected businesses and to ensure they remain in operation."

The loans are for a five-year period, and businesses must apply to the Delaware Economic Development Office by Sept. 1, 2006, in order to be reviewed by the Council for Development Finance. The amount of the loan will be based on documented damage from the flooding and may only be used to replace or repair this damage.

"While the state cannot buy out a business that was flooded, these loans provide a funding mechanism for these companies to recover from their losses," said DEDO Director Judy McKinney-Cherry. "The state recognizes the needs of companies that were hurt by the storms, and we hope that eligible businesses will take advantage of this program."

Funding for the loan program will come from the Delaware Strategic Fund. For more information or to find out how to apply, contact Gary Smith at the Delaware Economic Development Office at (302) 672-6817 or Bill Pfaff at the Delaware Small Business Development Center at (302) 856-1555.