Flood Victims Now Eligible For Low-Interest SBA Loans To Rebuild, CENTERS OPEN TODAY

Tuesday, August 21st, 2012 at 5:49 am

Minnesota residents and businesses affected by severe storms and flooding that occurred from June 14-21, can apply for low-interest disaster loans from the U.S. Small Business Administration, SBA Administrator Karen G. Mills announced on Monday.

Administrator Mills made the loans available in response to a letter from Governor Mark Dayton on August 14, requesting a disaster declaration by the SBA. The declaration covers Carlton, Pine and St. Louis counties and Fond du Lac Band of Lake Superior Chippewa and the adjacent counties of Aitkin, Chisago, Isanti, Itasca, Kanabec, Koochiching and Lake in Minnesota; and the adjacent counties of Burnett and Douglas in Wisconsin.

The counties of Carlton, Pine and St. Louis in Minnesota and Burnett County in Wisconsin were included in a previous Wisconsin SBA declaration. Therefore, residents and businesses that applied for a disaster loan under SBA’s Wisconsin declaration 13156/13157, do not have to submit another application under the Minnesota declaration for the same damage.

“The SBA is strongly committed to providing the people of Minnesota 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 are on hand at the Disaster Loan Outreach Centers to answer questions about the disaster loan program, explain the process, issue and help individuals complete their applications.

The centers are located in the following communities and are open as indicated:

Carlton County
Barnum Community Center
3753 Front Street
Barnum, MN 55707

Opens: Tuesday, August 21, at 9:00 a.m.
Hours: 9:00 a.m. – 5:30 p.m. weekdays
Saturday and Sunday (closed)
Closes: Wednesday, August 29, close of business

-more-
Barnum High School
3675 County Road 140
Barnum, MN 55707

Opens: Saturday Aug. 25 (for one day only)
Hours: 10:00 a.m. – 2:00 p.m.
Closes: Saturday, August 25 at 2:00 p.m.

Pine County
Rutledge Community Center
7369 County Highway 61
Rutledge, MN 55795

Opens: Tuesday, August 21, at 9:00 a.m.
Hours: 9:00 a.m. – 5:30 p.m. Tues., Wed., Thurs.
Closes: Thursday, August 23, close of business

St. Louis County
Duluth Entertainment and Convention Center (DECC)
350 Harbor Drive
Duluth, MN 55802

Opens: Tuesday, August 21, at 9:00 a.m.
Hours: 9 a.m. – 5:30 p.m. weekdays
Saturday, August 25, from 10:00 a.m. – 5:30 p.m. (closed Sunday)
Closes: Wednesday, August 29, 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 Nancy Liberski, SBA’s Minnesota 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, small agricultural cooperatives, small aquaculture businesses and most private nonprofit 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 1.938 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.

Applicants may apply online using the Electronic Loan Application (ELA) via SBA’s secure website at disasterloan.sba.gov/ela.

Individuals and businesses unable to visit the Centers may also obtain information and loan applications by calling the SBA’s Customer Service Center at 1-800-659-2955 (1-800-877-8339 for the deaf and hard-of-hearing), or by sending an email to . Loan applications can also be downloaded from the SBA’s website at 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.

The filing deadline to return applications for physical property damage is October 15, 2012. The deadline to return economic injury applications is May 16, 2013.

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