Small Business Admin. Offers Loans to Flood Victims
Posted at: 07/30/2012 8:25 PM
| Updated at: 07/30/2012 10:44 PM
By: Alan Hoglund
ahoglund@wdio.com
Do you have flood damage, but you don't have the money to do repairs? You may be in luck. The U.S. Small Business Administration has announced it's made low-interest disaster loans available to help flood victims make repairs and replace damaged property.
"Each state has to stand up on its own. Probably neither one is gonna cut it," Keith Kesler, Douglas County's Emergency Management Director, said, regarding Minnesota and Wisconsin getting individual assistance from FEMA following flooding in June.
Eyewitness News spoke to Kesler inside the Douglas County Government Center. He isn't holding out hope that either state will get individual assistance. Minnesota's request for individual assistance from FEMA has been denied once, and Governor Mark Dayton is appealing the decision.
In the meantime, Kesler said local banks are offering low-interest loans, so he called the SBA loans "another option for the people."
"I think it'll open up the opportunity for those who can't find other financing to get money at a low interest rate to repair their homes and businesses," he said.
Here's a breakdown of the maximum loans flood victims can get from the SBA:
- Homeowners - $200,0000 with interest rates as low as 1.94 percent
- Renters - $40,000 with interest rates as low as 1.94 percent
- Non-profit organizations - $2 million with interest rates as low as 3 percent
- Businesses - $2 million with interest rates as low as 4 percent
According to the SBA, each loan can be paid over a maximum of 30 years.
For businesses, another loan is available. The SBA says the Economic Injury Disaster Loan (EDIL) helps meet working capital needs caused by the disaster. EDIL assistance is available regardless of whether the business suffered any physical property damage.
The SBA made the loans available in response to a letter from Wisconsin Governor Scott Walker on July 19, requesting a disaster declaration by the administration. But the loans are available in Minnesota as well.
Here's a list of the counties eligible for loans:
- Bayfield
- Burnett
- Carlton
- Douglas
- Pine
- Sawyer
- St. Louis
- Washburn
If you have property damage, you can apply until September 25, 2012. If your business suffered economic injury, the deadline to apply is April 29, 2013.
SBA customer service representatives will be on hand at the Disaster Loan Outreach Center in Superior to answer questions about the disaster loan program, explain the process, and help people complete applications.
The center is at Superior Business Center, Inc., at 1423 North 8th Street. It opens Tuesday, July 31, and will be open until August 9.
The center is open weekdays from 8 until 4:30 p.m. It's open on Saturday from 10 until 2 p.m, and it will be closed on Sunday.
You can apply for loans on the SBA's secure website. If you need more information call 1-800-659-2955.
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