Micro loans could help speed up flood recovery

We've had three national disasters in recent years. Ours, theirs and the latest. Ours was the flood of 2008. Theirs was Hurricane Katrina in 2005. The latest is the oil spill's impact in the Gulf of Mexico region.

The problem in recovery has been poverty. Disaster aid moved in quickly, but the residents involved did not have the savings stored up to pay for the rebuilding efforts.

Repaying losses is not enough, even if some of the losses are covered by insurance. We need to repay the livelihoods of the individuals involved.

Owners of the houses in the Time Check or Czech Village area in Cedar Rapids still have their homes boarded up, waiting for buyout checks.

A new approach is needed. In some Third World countries, impoverished individuals get a chance to start over with small micro loans. If the homes in the Time Check area, for example, had a micro loan, a small loan or a grant, they could fix up their property while waiting for the government check. Otherwise, we may be creating a permanent underclass and poverty in the flooded areas.

I also propose that The Gazette and the new Cedar Rapids city manager meet with local bank executives to create a relocation bank for victims in the flood plain. Chip in some money into a larger pool to buy flooded houses. The homeowner would get a payout to buy outside the flood plain.

Take the idea to 2nd District Congressman Dave Loebsack for federal funding.

Al Swegle

Cedar Rapids