Local residents and business owners are eligible to apply for low-interest loans from the Small Business Administration if they were affected by a flood earlier this month that caused extensive damage in some areas.
Washington County Mayor Dan Eldridge learned about the Disaster Declaration on Friday.
“The Small Business Administration will be making loans available to individuals and businesses in Washington County at ... low interest rates,” Eldridge said.
Officials still don’t know if FEMA, the Federal Emergency Management Agency, will provide financial assistance to victims.
That application process, which is being considered in Washington, could take up to three weeks.
In the meantime, the SBA has approved a disaster declaration to provide financial assistance to victims in the form of a loan.
According to an information sheet from the SBA, there are several types of disaster loans available, but there are also certain requirements for eligibility.
Damage from the Aug. 5 storm that brought at least four inches of rain in an hour to the region affected many homeowners in the Dry Creek community as well as residents and businesses in the Johnson City area.
Applicants for the SBA loans must have an acceptable credit history, the ability to repay all loans and in some cases will have to show collateral for physical loss and economic injury loans.
Interest rates are fixed for the term of the loan and depends on if the applicant has other funds available to them.
Home loans for applicants with no other funding source carry a 1.688 percent rate while an applicant who does have other funding sources would have a 3.375 percent interest rate. •
Business loans carry a 4 percent or 6 percent interest rate, nonprofit organization loans have 3 percent and 3.125 percent interest loans; economic injury loans for businesses have a 4 percent interest rate and for nonprofit organizations has a 3 percent interest rate.
There are limits to the amount applicants can borrow. Home loans are limited to $200,000 for repair or replacement of real estate and $40,000 for personal property.
Business and economic injury loans are limited to $2 million.
There are several other limitations and requirements placed on the loans from the SBA. That information is available by phone at 800-659-2955, by email at disasâ€‰ firstname.lastname@example.orgâ€‰ , or on the SBA website, www.sbaâ€‰ . gov.
Applicants may also apply online at https://disasterloan.sba.gov/ela.