WASHINGTON – Residents and businesses affected by severe storms and flooding on July 10 in Middlesex County, can apply for low-interest disaster loans from the U.S. Small Business Administration, SBA Administrator Karen G. Mills announced today.
Mills made the loans available in response to a letter from Massachusetts Acting Gov. Timothy P. Murray on July 23, requesting a disaster declaration by the SBA. The declaration covers Middlesex County and the adjacent counties of Essex, Norfolk, Suffolk and Worchester in Massachusetts and Hillsborough in New Hampshire.
“The SBA is strongly committed to providing the people of Massachusetts with the most effective and customer-focused response possible to assist homeowners, renters, and businesses of all sizes with federal disaster loans,” said Administrator Mills. “Getting businesses and communities up and running after a disaster is our highest priority at SBA.”
“Loans up to $200,000 are available to homeowners to repair or replace damaged or destroyed real estate. Homeowners and renters are eligible for loans up to $40,000 to repair or replace damaged or destroyed personal property,” said Frank Skaggs, director of SBA’s Field Operations Center East in Atlanta. SBA’s customer service representatives will be on hand at the Disaster Loan Outreach Center to answer questions about the disaster loan program, explain the process, issue and help individuals complete their applications.
The Center will be located in the following community and will open as indicated:
Somerville High School
Atrium at the Field House
81 Highland Avenue
Somerville, MA 02143
Opens: Friday, July 30 from 9 a.m. to 5:30 p.m.
Open: Saturday, July 31 from 9 a.m. to 1 p.m.
Close: Sunday, August 1
Open: Monday, August 2 – Thursday, August 5 from 9 a.m. to 5:30 p.m.
Closes: Thursday, August 5 at the close of business
“Businesses and non-profit organizations of any size may borrow up to $2 million to repair or replace damaged or destroyed real estate, machinery and equipment, inventory, and other business assets,” said Robert Nelson, SBA’s Massachusetts district director.
The SBA may increase a loan up to 20 percent of the total amount of disaster damage to real estate and/or leasehold improvements, as verified by SBA, to make improvements that lessen the risk of property damage by future disasters of the same kind.
For small businesses, and most private non-profit organizations of all sizes, the 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 physical property damage.
Interest rates are as low as 2.750 percent for homeowners and renters, 3 percent for non-profit organizations and 4 percent for businesses with terms up to 30 years. Loan amounts and terms are set by the SBA and are based on each applicant’s financial condition.
Individuals and businesses unable to visit the Center in person may obtain information on loan applications by calling the SBA’s Customer Service Center at 800-659-2955 (800-877-8339 for people with speech or hearing disabilities), Monday through Friday from 8 a.m. to 6 p.m. EDT or by sending an e-mail to email@example.com. Business loan applications can also be downloaded from the SBA website at http://www.sba.gov/. Completed applications should be returned to the Center or mailed to: U.S. Small Business Administration, Processing and Disbursement Center, 14925 Kingsport Road, Fort Worth, TX 76155.
Those affected by the disaster may apply for disaster loans from SBA’s secure website at https://disasterloan.sba.gov/ela/.
The filing deadline to return applications for physical property damage is September 27, 2010. The deadline to return economic injury applications is April 27, 2011.