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Washington, D.C., September 19th – Congressman Jim Moran, Virginia Democrat, announced today that the U.S. Small Business Administration has closed the Disaster Loan Outreach Centers that have been open for the last month to assist those who suffered damages from the June 2006 flooding.
However, homeowners, renters, non-profit organizations and businesses are reminded that they have until October 16, 2006 to submit applications for low-interest loans for damage caused by the severe storms and flooding that occurred June 25, 2006 through June 30, 2006. For businesses, both physical disaster loans and economic injury disaster loans (EIDL) are available.
“Northern Virginians affected by the late June floods should know that help is still available,” said Congressman Moran. “Everyone whose home or office was harmed by the recent flooding should seek this assistance. Just because the loans are provided by the SBA does not mean you have to own a small business to receive help. The Alexandria Small Business Development Center is open 5 days a week and stands ready to provide expert guidance.”
Alexandria SBDC Executive Director Bill Reagan urges affected businesses or nonprofits to consider the option of very low interest loans with generous repayment terms to help them return to their business condition before the rising water damage. Reagan noted that, “These are loans that SBA is trying very hard to make, and the SBDC has a great track record for helping applicants get approvals.”
Background Information:
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In the little over three weeks since the declaration, the SBA received requests from 126 applicants. Unfortunately, only about 50% have completed them so far.
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The application process is simple and takes only about 20 minutes. If applicants get stuck they can call the Customer Service Center at 1-800-659-2955 (1-800-877-8339 for hearing impaired).
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The Alexandria SBDC is there to assist any businesses needing help with financial statements or other items.
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SBA has approved loans for more than $725,000 in the three weeks since the disaster was declared.
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Due to the nature of this disaster, many of the SBA loans will be for less than $10,000. These loans are simple interest (for most renters and homeowners the rates will be at 2.937%) and repayment terms can be extended up to 30 years depending on repayment ability. Any loan for $10,000 or less is unsecured.
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You don't have to have your insurance settled before you apply.
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Those that suffered physical injury from the June storms have about four more weeks to apply (October 16th is the deadline for applications for those that suffered physical injury).
Completed applications should be returned to the U.S. Small Business Administration, Processing and Disbursement Center, 14925 Kingsport Road, Ft. Worth, Texas 76155. The deadline for submitting completed physical damage applications is October 16, 2006; the deadline for economic injury applications is May 17, 2007.
With the closing of the local SBA Disaster Loan Outreach Centers, those seeking more information and application forms are advised to call the SBA Customer Service Center at 1-800-659-2955 (1-800-877-8339 for the hearing impaired), Monday through Saturday from 8 am until 9 pm EDT. Business loan applications can also be downloaded from the SBA website at www.sba.gov/disaster.
In addition, the Alexandria Small Business Development Center (SBDC) has applications for business loans and is available to assist small businesses in completing the applications for both physical and economic injury loans. The Alexandria SBDC can be reached at (703) 778-1292 or info@alexandriasbdc.org
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