SBA offers loans to help victims of flooding

Steve Preston, administrator of the U.S. Small Business Administration (SBA) has announced that low-interest disaster loans are now available to Washington residents and businesses, due to the Federal Disaster declaration issued by President Bush.

The declaration covers Grays Harbor and Lewis counties that were hit hardest during last week's storm.

Disaster loans up to $200,000 are available to homeowners to repair or replace damaged or destroyed real estate. Homeowners and renters are eligible for up to $40,000 to repair or replace personal property.

Businesses of any size and non-profit organizations may borrow up to $1.5 million for the repair or replacement of real estate, machinery and equipment, inventory and other business assets. SBA can also lend additional funds to homeowners and businesses to help with the cost of making improvements that protect, prevent or minimize the same type of disaster damage from occurring in the future.

For small businesses only, SBA offers Economic Injury Disaster Loans (EIDLs) to help meet working capital needs caused by the disaster. EIDL assistance is available regardless of whether the business suffered any property damage.

Interest rates can be as low as 2.937 percent for homeowners and renters and 4 percent for businesses with terms up to 30 years. Loan amounts and terms are set by SBA and are based upon each applicant's financial condition.

To be considered for all forms of disaster assistance, victims must first call the Federal Emergency Management Agency at 1-800-621-33p62. Additional details on the location of assistance centers can by obtained by calling the SBA customer service center at 800-659-2955. The filing deadline to return applications for property damage is February 7, 2008. The EIDL deadline is September 9, 2008.