Valley Businesses Gain $2 Million in Rebuilding Support

The Holiday Farm Fire that torched through the McKenzie River Valley nearly five years ago left many local businesses grappling with its economic scars. Now, a new $2 million Business Recovery Fund could give them the boost they’ve been waiting for.

“Slow and insufficient funding has hampered recovery efforts,” Lane County county staff noted in a report to commissioners. “Not allocating these funds would further delay or prevent the recovery of multiple businesses impacted by the Holiday Farm Fire.”

Lane County is partnering with Community LendingWorks (CLW), a nonprofit lender, to administer the Holiday Farm Fire Business Recovery Fund. The money will come from a pool of federal disaster recovery dollars earmarked for communities hit by the Labor Day 2020 wildfires.

For business owners like café operators, rafting guides, or small lodge proprietors who watched their livelihoods vanish overnight, the help can’t come soon enough.

The Holiday Farm Fire destroyed more than 400 homes and several businesses when it raced to the west down the McKenzie River corridor, leaving behind an uneven recovery. Some families have rebuilt their homes, while others are still waiting on insurance, construction, or financing. Local businesses face the added challenge of serving a smaller customer base while shouldering higher costs.

County officials say the fund is designed to speed up support, and cut through red tape that has slowed other programs. CLW was tapped for the role after its success administering emergency loan funds during the COVID-19 pandemic and managing the statewide Oregon Small Business Stabilization Fund.

“Community LendingWorks has shown they can get dollars into the hands of business owners fast and with accountability,” county staff wrote in their report to commissioners.

The recovery fund is one of several projects funded through the state’s ReOregon disaster recovery program, which is distributing federal Community Development Block Grant – Disaster Recovery (CDBG-DR) dollars. Lane County accepted nearly $8 million from the program this spring to support economic revitalization, planning, and infrastructure in the McKenzie Valley.

On August 12, commissioners voted 4 to 0 to finalize the agreement, which means it could begin making awards later this year. County leaders say updates on the program will be included in quarterly wildfire recovery reports.

Valley residents, though, hope the program will be about more than paperwork. It could help keep the community’s economic heart beating.