Disaster assistance available for those affected by July flash floods
Businesses, residents, nonprofits in tri-county region can apply for the loans
WASHINGTON, D.C. >> Federal assistance is being made available to eligible businesses and residents across the region impacted after intense storms produced flash flooding between July 11 and 12, 2019.
Acting Small Business Administration (SBA) Administrator Christopher Pilkerton announced Wednesday the SBA will make low-interest disaster loans available through the SBA Disaster Loan Programs.
Pilkerton announced the disaster loans Wednesday, in response to an Aug. 28 letter from Pennsylvania Gov. Tom Wolf, requesting a disaster declaration by the Small Business Administration. The declaration covers Berks County and the adjacent counties of Chester, Lancaster, Lebanon, Lehigh, Montgomery and Schuylkill.
“The SBA is strongly committed to providing the people of Pennsylvania with the most effective and customer-focused response possible to assist businesses of all sizes, homeowners and renters with federal disaster loans,” Pilkerton said in a press release, adding that getting businesses and communities up and running after a disaster is the SBA’s highest priority.
“Low-interest loans are a significant part of helping people and businesses recover from flooding,” Gov. Wolf said in a press release. “We appreciate that the SBA granted our request.”
Low-interest loans of up to $200,000 are available to homeowners to repair or replace damaged or destroyed real estate. SBA regulations permit loans up to $40,000 to repair or replace personal property.
“Businesses and private nonprofit organizations may borrow up to $2 million to repair or replace disaster damaged or destroyed real estate, machinery and equipment, inventory, and other business assets,” John Fleming, acting district director for the SBA’s Philadelphia district, said in the release.
Interest rates are as low as 4% for businesses, 2.75% for nonprofit organizations and 1.938% for homeowners and renters with terms up to 30 years. Loan amount and terms are set by the SBA and are based on each applicant’s financial condition, according to the agency.
Applicants may also be eligible for a loan amount increase up to 20 percent of their physical damages, as verified by the SBA for mitigation purposes. Eligible mitigation improvements may include a safe room or storm shelter, sump pump, French drain or retaining wall to help protect property and occupants from future damage caused by a similar disaster.
To help facilitate the loan application process, a Disaster Loan Outreach Center has been established at the Salvation Army, 409 S. Reading Ave. in Boyertown. SBA customer service representatives will be on hand to issue loan applications, answer questions about the disaster loan program, explain the application process and help individuals to complete their applications.
The Disaster Loan Outreach Center opens at 11 a.m. Friday, Sept. 6, and will have hours through Tuesday, Sept. 17. The office has the following operating hours: Monday – Friday, 9 a.m. to 6 p.m.; Saturday, Sept. 7 and 14, 10 a.m. to 2 p.m. The office will be closed on Sunday, Sept. 8 and 15. The office will close at 5 p.m. on Tuesday, Sept. 17.
Individuals and businesses unable to visit the centers in person may obtain information and loan applications by calling the SBA’s Customer Service Center at 1-800-659-2955 (1800-877-8339 for the hearing impaired), or by e-mailing disastercustomerservice@sba.gov.
Loan applications can also be downloaded at www.sba.gov/disaster. Applicants may apply online using the Electronic Loan Application (ELA) via the SBA’s secure website at https://disasterloan.sba.gov/ela.
The filing deadline to return applications for physical property damage is Nov. 4, 2019. The deadline to return economic injury disaster loan applications is June 3, 2020.
The U.S. Small Business Administration provides entrepreneurs and small business owners with the resources and support they need to start, grow or expand their businesses, or recover from a declared disaster. For more information visit www.sba.gov.