For the first time in 25 years, the future of Peter Panagakos` little flower shop in the State Street subway was in the hands of someone else. And there wasn`t much he could do about it.
Whether Panagakos` Subway Flower Shop would survive the Great Chicago Flood was largely dependent on the Chicago Transit Authority, the Army Corps of Engineers, the City of Chicago and the federal government.
”If this lasts another week, I`ll need some assistance to get by,”
Panagakos, 55, said Monday after picking up an application for a federal disaster loan in the Kluczynski Federal Building.
He was one of nearly 250 small-business owners, attorneys, travel agents and others who sought help from the flood that virtually shut down the Loop last week.
The floor of the small flower shop Panagakos has operated in the subway tunnel near Marshall Field`s for 25 years was covered with soggy wrapping paper, wilted flowers and about a half-inch of water.
He had not begun to estimate how much money he would need to get things running again, once the CTA reopens the subway.
”I lost all of the (Easter) holiday, and this week is the busiest week of the year,” Panagakos said, referring to National Secretaries Week. ”This time of year is when I make extra money to keep me going for the summer.”
The Loop was declared a federal disaster area by President Bush last week, making businesses eligible for millions of dollars in low-interest loans through the Federal Emergency Management Agency.
Throughout the day, a steady stream of people filed into the Disaster Field Office, at 230 S. Dearborn St., where 40 staff members answered their questions.
”We`re trying to keep our business up and running while this is happening, but until we can get back in my concern is getting in a position of a possible loan and tax relief,” said John Baker, comptroller of S.A. Peck & Co., a diamond import company in the Pittsfield Building, 55 E. Washington St.
That building and 31 E. Jackson Blvd., which houses a portion of De Paul University, were among 11 Loop buildings that remained closed because of flooded basements.
”We`re going to inquire to see what`s available,” said De Paul treasurer Bob Kozoman, who also sought assistance Monday.
Most of the loans carry a 4 to 6.5 percent interest rate and can be repaid over 30 years, said Donald Waite, spokesman for the Small Business Administration.
The SBA Business Physical Disaster Loans, which can be used to repair or replace damaged property, including inventory and supplies, are available through June 15. The SBA Economic Injury Disaster Loans, which are working capital loans that allow businesses to stay in operation during recovery, are available through Jan. 15, 1993, Waite said.
Most of those applying for loans, which cap out at a total of $500,000 each, are owners of small businesses-florists, jewelers, restaurant owners, travel agents and lawyers.
Non-profit businesses like De Paul University could qualify for ”public assistance” loans that are also set aside for state and local governments, a FEMA spokeswoman said.
De Paul officials said they also were looking into how much damage is covered by the university`s insurance policy.
Students, however, should not be concerned that the loss will translate into a tuition increase.
”No one here at the university has even suggested or hinted that this would be passed along to the students,” said De Paul spokesman Tom Gibbons.
