LOWER LAKE >> The Small Business Administration (SBA) opened its disaster loan outreach center on Thursday to assist Clayton Fire survivors in their upcoming recovery.
In the wake of last month’s fire, which destroyed 300 structures and damaged 28 more, the state government called upon the organization to assess the damage. By Sept. 1, the area was declared a disaster by the group and therefore eligible for help.
According to SBA Public Information Officer Bill Koontz, those with damaged homes and or businesses will be eligible to apply for physical disaster loans. For business owners not physically impacted but economically affected by the blaze, they will be eligible for an economic injury.
Based on a person’s economic situation, the interest rates will either be set at market-value or below. Most people likely will fall into the latter, Koontz said.
“For those individuals that have enough liquid assets to from the disaster on their own, those few people are given a market rate,” he added. “When we had the [2014] Napa earthquake, almost everyone got the low rate … there aren’t many people who get approved for the higher rate.”
To apply, survivors can either go online at SBA.gov or to the outreach center based in the Lower Lake School Museum at 16435 Main St. Residents and business owners that suffered physical damage will have until Nov. 7 to apply while the deadline for businesses dealing with economic injury is June 6, 2017.
It’s free to apply and people will have six months from their loan’s approval to decide whether or not they want to take it, Koontz said. The center will remain open indefinitely.
“It will be open for as long as we are needed,” he said.
The SBA also assisted Valley Fire survivors. It approved 232 home loans and 55 business loans, Koontz reported, totaling approximately $26 million.
The interest rates from their fact sheet are: 1.5 or 3.125 percent for home loans, four or 6.25 percent for businesses, and four percent for economic injury loans. Non-profit organization rates are set at 2.625 percent. Collateral is required for loans worth at least $25,000.
