Low-interest SBA Disaster Loans Approved for Recent Northern Virginia Flood Damage

Low-interest SBA Disaster Loans Approved for Recent Northern Virginia Flood Damage

RICHMOND - Governor Timothy M. Kaine announced today that the U.S. Small Business Administration has approved his request for disaster assistance for homeowners, renters and businesses in the counties of Arlington, Fairfax, Loudoun and Prince William, and the cities of Alexandria, Fairfax and Falls Church. The SBA action clears the way for those sustaining major damage from severe weather that occurred toward the end of June to apply for low-interest loans.

"People in parts of northern Virginia were particularly hard hit by the torrential rain and flooding that occurred on June 25th," Governor Kaine said. "I am pleased that the SBA has approved our effort to allow those who have seen their property damaged and destroyed to apply for low-interest loans. These loans could be vital in helping people get back on their feet."

On July 31st, and again on August 11th, the Federal Emergency Management Agency denied Governor Kaine's requests for Individual Assistance to assist property owners affected by the severe weather in late June and early July.

However, the damage in Fairfax County and the City of Alexandria met the SBA threshold for disaster assistance. When a locality is approved for the SBA disaster loan program, all of the localities adjacent to it are also approved for the program automatically. As a result, when Alexandria and Fairfax Counties were approved for the program, the counties of Arlington, Loudoun and Prince William and the cities of Fairfax and Falls Church in Virginia were automatically added because they are adjacent to the approved localities. In addition, the District of Columbia and Charles, Montgomery and Prince George's counties in Maryland were automatically added.

There are two types of SBA low-interest residential loans for which individuals can apply. Homeowners are eligible for Real Property Loans of up to $200,000 to repair or restore a primary home to its pre-disaster condition. Personal Property Loans can also provide homeowners or renters with up to $40,000 to help repair or replace personal property, such as clothing, furniture and automobiles lost in the disaster.

In addition, businesses suffering damage can apply for loans to help repair or replace damaged property as well as for loss of business.

Interest rates for homeowners and renters range from 2.937 to 5.875 percent, depending on credit availability. Rates for businesses and nonprofit organizations range from 4 to 7.763 percent, depending on credit availability.

Details on how individuals, businesses and nonprofits can apply for assistance will be announced by the SBA.

http://www.governor.virginia.gov/MediaRelations/newsReleases/viewRelease.cfm?id=215