CONGRESSIONAL RECORD— Extensions of Remarks E1790 HON
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E1790 CONGRESSIONAL RECORD — Extensions of Remarks July 15, 2009 COMMUNITIES REBUILD AFTER for providing a line of credit to the res- viewed for this story credited Mayor Lyda HURRICANE IKE taurant. Ann Thomas and Jeff Sjostrom, president of With the loan, DiBella’s was able to make Galveston Economic Development Partner- storm repairs and open in November. But in ship, for the idea of recovery loans. Island HON. RON PAUL January, disaster struck again when a fire businessman Gerald Sullivan, who early OF TEXAS broke out on the second floor of the 20-year- after the storm was appointed by Thomas to IN THE HOUSE OF REPRESENTATIVES old restaurant. HomeTown Bank helped help with recovery, also played a role in en- Wednesday, July 15, 2009 again, DiBella said. DiBella’s Italian Res- couraging recovery loans, bankers said. taurant plans to reopen Tuesday. Frost Bank, headquartered in San Antonio, Mr. PAUL. Madam Speaker, at a time when ‘‘Without HomeTown Bank and Gary made $5 million in recovery loans, Shannon the financial headlines are dominated by sto- Gilliland, there wouldn’t be a DiBella’s Res- said. ries of financial institutions seeking taxpayer taurant,’’ DiBella said. ‘‘I had insurance, but Sjostrom recently traveled to Manatee, funds and other special privileges, I am you know what that’s like.’’ Fla., to share ideas with officials there about Gilliland, who checked on properties for pleased to call my colleagues’ attention to a recovery efforts. his clients who had evacuated and weren’t ‘‘They were just amazed at the response of story from the Galveston Daily News about allowed back on the island for days after the how four community banks came together to our local lenders,’’ Sjostrom said. storm, was in May named Indie Banker of Still only about 75 percent of the island’s help their friends, neighbors and customers the Month by Independent Banker Magazine 2,500 business have returned, Sjostrom said. begin to recover and rebuild from Hurricane for his work during Hurricane Ike. Many were uninsured for flood damage when Ike. BRIDGE OF DOLLARS Ike struck. Last fall, as the people of Galveston were HomeTown Bank, at last count, had made Businesses that aren’t able to turn to the assessing the damage from Hurricane Ike and more than $6 million in bridge loans to area banks are doing what they can to recover, Congress was beginning debate on spending businesses after the storm, said Jimmy Ras- Sjostrom said, billions of taxpayer funds to bail out irrespon- mussen, president and chief executive offi- ‘‘They’re not sitting back waiting and cry- cer. sible financial institutions, representatives of ing,’’ Sjostrom said. ‘‘They’re going forward Two days after Ike struck, Wall Street in- doing what they have to make it work. We Frost, HomeTown, Moody National and Texas stitution Lehman Brothers filed for Chapter still have a lot of businesses that need finan- First banks meet to discuss how these banks 11 bankruptcy, deepening a financial crisis cial help.’’ could help jumpstart hurricane recovery ef- and already painful credit crunch that had f forts. The four banks agreed to make unse- stalled lending. Fast-and-loose credit prac- cured bridge loans to Galveston businesses to tices by the banking giants had come home EARMARK DECLARATION ensure these businesses had access to capital to roost. while they waited for federal assistance and NO ‘VOODOO’ PRODUCTS But independent and community banks HON. J. RANDY FORBES insurance payments. OF VIRGINIA The four banks made more than $40 million were never caught holding a bundle of bad loans. IN THE HOUSE OF REPRESENTATIVES in recovery loans. These loans provided life- ‘‘We’re not sitting here selling voodoo lines to many businesses struggling with both products to peddle to people,’’ said Matt Wednesday, July 15, 2009 the devastation of Hurricane Ike and the credit Doyle, vice chairman of Texas First Bank. Mr. FORBES. Madam Speaker, pursuant to crisis. Without the efforts of these four banks, That local competing banks got together the Republican Leadership standards on ear- several Galveston businesses would have had in one room after the hurricane wasn’t so unusual, Doyle said. marks, I am submitting the following informa- to shut their doors. ‘‘We may be competitors, but we’re com- tion regarding earmarks I received as part of In conclusion, Madam Speaker, I extend my munity bankers,’’ Doyle said. ‘‘When our H.Q. 3183, the Energy and Water Develop- thanks to management and employees of community is suffering, all that goes out the ment and Related Agencies Appropriations Act Frost, HomeTown, Moody National, and Texas window, and it’s never really even in the of 2010. First banks for their efforts to help the busi- house.’’ Requesting Member: Congressman J. nesses and people of Galveston recover from Texas First Bank lent $8.5 million in recov- ery loans. RANDY FORBES Hurricane Ike. Bankers are the first to say their efforts Bill Number: H.R. 3183 [From the Galveston Daily News, May 24, weren’t without self-interest. They certainly Account: Army Corps of Engineers, Con- 2009] earned money from the loans. And they struction BANKS STEPPED UP WHEN CHIPS, ECONOMY made loans based on credit history, long- Legal Name of Requesting Entity: City of WERE DOWN standing relations and with the under- Chesapeake, VA (By Laura Elder) standing they would be repaid. Address of Requesting Entity: 306 Cedar Just days after Hurricane Ike, as failing IN IT TOGETHER Road, Chesapeake, VA 23322 Wall Street institutions roiled the U.S. fi- And if a lot of local businesses failed, the Description of Request: Provides $100,000 nancial system, civic leaders and representa- local banks were going to feel it, so they had tives of four banks forged an agreement that an interest in the success of their neighbors. to replace the existing 2-lane Deep Creek AIW would profoundly shape the island’s eco- ‘‘If Galveston business didn’t recover, Bridge with a 5-lane, dual bascule bridge, thus nomic recovery. we’re all going to be damaged, all going to providing a new structurally sound bridge and After several meetings, some in storm- take losses,’’ said Vic Pierson, president of reducing traffic congestion along the corridor. swamped buildings under generator-powered Moody National Bank, which made about $21 AIW Deep Creek Bridge (owned and operated lights, representatives of Frost, HomeTown, million in recovery loans after the storm. by the Army Corps of Engineers) was built in Moody National and Texas First banks ‘‘It was in our best interest to do whatever agreed to make unsecured bridge loans to is- we could to assist as rapidly as we could for 1934 and is functionally obsolete. The City land businesses for rebuilding until federal business recovery on the island.’’ and State (along with FHWA) have made im- money and insurance payments materialized. STRONG RELATIONSHIPS provements on either side of the bridge and The community banks made more than $40 Those who didn’t have strong relationships now replacement of the bridge is critical to the million in recovery loans at a time when with their bankers were left waiting for help movement of people and goods along U.S. Rt. lending by industry giants had all but from the Small Business Administration and 17 as well as the Atlantic Intracoastal Water- ground to a halt. The 180-day loans, at 5 per- the Federal Emergency Management Agen- way. cent interest, were a lifeline to local busi- cy, Pierson said. Requesting Member: Congressman J. nesses hoping to recover quickly from a hur- ‘‘Those programs are very good, but to fi- RANDY FORBES ricane that inflicted $11.4 billion in damage nally get some dollars can take 90 to 120 days along the upper Texas Coast. or longer,’’ Pierson said. Bill Number: H.R. 3183 Some island business owners said their ‘‘A business couldn’t wait three or four Account: Army Corps of Engineers, O&M livelihoods would have been lost for good had months to get started and I think that’s Legal Name of Requesting Entity: Army it not been for the help of community bank- where the local community banks came in.’’ Corps of Engineers ers. Watching a business rebuild can encourage Address of Requesting Entity: 803 Front LINE OF CREDIT others to follow, Pierson said. Street, Norfolk, VA 23510 Charley DiBella, owner of DiBella’s Italian ‘‘It was absolutely critical that people started putting their businesses back to- Description of Request: Provides Restaurant, which took in 4 feet of storm $2,620,000 for the Atlantic Intracoastal Water- surge, was helped by HomeTown Bank not gether and making a statement,’’ Pierson once but twice after Hurricane Ike, which said. way Albemarle and Chesapeake Canal to pro- struck Sept. 13. NEED REMAINS tect the navigation route between the South- DiBella credits the bank and Gary Albert Shannon, Frost Bank’s group presi- ern Branch of the Elizabeth River and the VA- Gilliland, chief commercial lending officer, dent in this region, and other bankers inter- NC state line in the North Landing River, a VerDate Nov 24 2008 05:54 Jul 16, 2009 Jkt 079060 PO 00000 Frm 00020 Fmt 0626 Sfmt 9920 E:\CR\FM\A15JY8.023 E15JYPT1 tjames on DSKG8SOYB1PROD with REMARKS.