Washington, Windsor businesses assisted in recovery from 2011 flooding

Forty-one businesses in Washington and Windsor counties have received more than $800,000 in financial assistance from the federally funded Community Development Block Grant’Disaster Recovery program. This funding was secured last year by Vermont’s congressional delegation and is part of the $21.6 million federal grant made to the State of Vermont Agency of Commerce and Community Development for recovery from Tropical Storm Irene and other 2011 flooding events. The grant was made to Central Vermont Community Action Council (CVCAC), in partnership with the Central Vermont Economic Development Corporation (CVEDC) and the Green Mountain Economic Development Corporation (GMEDC) to assist businesses trying to recover from flooding.
Most of the businesses have received grants for working capital’to make payroll, pay overdue bills, and purchase equipment lost in the floods. A few have been able to make structural repairs to their businesses, and one farm has been able to repair a pond used to water their animals. Businesses applied to the regional development corporations in their areas’Green Mountain Economic Development Corporation in Windsor County and Central Vermont Economic Development Corporation in Washington County’and received technical assistance putting together the materials needed to submit an application for funding. Of the 44 businesses that applied, 41 have received funding of up to $40,000. Located in towns from Bridgewater to Waterbury, and Montpelier to Rochester, and these businesses represent a variety of sectors including manufacturing, organic farms, crafters, and specialty food producers.
One of the businesses assisted is ShackletonThomas located in the 180-year-old Bridgewater Mill and that makes fine handmade furniture, pottery, and home accessories. During Irene, the Ottauquechee River crested its banks, flooding all lower levels of ShackletonThomas’ woodworking and pottery workshops with six to nine feet of water and mud. Some of the equipment including pottery kilns were completely destroyed and had to be either replaced or repaired. Also, the bulk of their lumber inventory was inundated with water; what was salvageable had to be sent off to be kiln-dried. A great deal of other inventory was also lost. Charles Shackleton, co-owner with Miranda Thomas, said, ‘Our losses amounted to more than $550,000, only part of which was covered by insurance; interim and longer term financing from the SBA and VEDA helped bridge the gap. The grant funds available through the CDBG-DR have been critical to being able to keep our 18 employees working and to put together our marketing materials, including catalogs for the upcoming seasons.’ You can see their catalog at http://www.shackletonthomas.com
Another example is in Moretown, where Majestic Auto’a small auto body repair and paint shop with four employees owned by Martha and Thomas Douglass’was flooded with six feet of water from the Mad River. Much of their equipment, tools, and inventory was destroyed, and had to be replaced; losses totaled nearly $120,000. Opened originally in 1987, Majestic Auto was unable to operate their business for all of September, and only resumed partial operations for the remainder of 2011. According to Martha Douglass, ‘Customer responses after the flood offer the best testament to all Vermonters and of how our business ethics have built a loyal customer base. Nearly all the customers waited for Majestic Auto to reopen and these loyal customers were instrumental in restoring our cash flow to the business when we began operations again.’ Grant funds from the CDBG-DR have helped to cover payroll and get Majestic Auto current with their suppliers. Majestic Auto also hopes to hire additional employees to cover the demand for their services.
These two businesses were able to regain their operations with support from the Community Development Block Grant’Disaster Recovery and a partnership between CVCAC and the regional development corporations. The state expects to receive another grant for Irene and 2011 flooding events later this fall and will make additional funds available for distribution to businesses in Washington and Windsor counties. For questions, businesses with remaining unmet needs should contact Joan Goldstein at Green Mountain Economic Development Corporation (GMEDC) at 295-3710 in Windsor County or Sam Andersen from Central Vermont Economic Development Corporation (CVEDC) at 223-4654 in Washington County.