SBA, FEMA offer low-interest disaster loans
Last Updated: 17:01 September 16, 2013
Businesses and residents continue to dig out from the damage caused by the storms, including flooding and mudslides.
Neither the Small Business Association nor the federal government has made damage assessments in Boulder County, yet, said Gary Colton, a spokesman for the federal agency.
Even if businesses didn't suffer any damage, owners can apply for economic injury disaster loans of up to $2 million, Colton said. The working capital loan can be used to pay for salaries and other immediate expenses, Colton said.
"They have to show that their revenues suffered as a result of the storm and that flooding caused them to be closed for a period of time and decreased their business," Colton said.
An estimated one in four small businesses does not survive a flood disaster, according to industry estimates.
Disaster loans for businesses can be used to repair or replace damaged or destroyed real estate, equipment, inventory and other business assets.
Homeowners can apply for loans of up to $200,000 to repair or replace damaged or destroyed real estate. Homeowners and renters also can apply for loans of up to $40,000 to repair or replace damaged or destroyed personal property, the SBA said.
Interest rates on the loans can be as low as 4 percent for companies and as low as 1.937 percent for homeowners and renters, the SBA said. Loan amounts and terms are set by the SBA and are based on each applicant's financial condition, the agency said.
FEMA's disaster-related assistance may include:
Low-cost business loans up to $2 million for uninsured property losses.
Working capital loans up to $2 million for small businesses and nonprofits to cover cash flow problems to recover from this disaster.
Unemployment payments for workers who temporarily lost jobs because of the disaster.
Income tax assistance for filing casualty losses.
Rental payments for temporary housing,
Grants for home repairs for items not covered by insurance.
Grants to replace personal property.
Plus, other related support.
To be considered for loans, companies and individuals must call the Federal Emergency Management Agency at 1-800-621-3362 (or FEMA). Once disaster recovery centers open in the region, SBA representatives will meet applicants personally.
For details about the disaster recovery centers call the SBA Customer Service Center at 1-800- 659-2955.
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