LAKEPORT >> In the wake of the winter floods, the Small Business Association (SBA) is setting an office and offering federal disaster loans.
The loans apply not only to businesses, but also private nonprofits, homeowners and renters who suffered from any losses or damages that were caused by the storms and flooding that occurred in Lake County from Feb. 1 through Feb. 25.
An SBA team opened an office on First St. in Lakeport.
Cynthia Cowell the Public Information Officer for SBA said applications are available for Business Physical Disaster loans, Economic Injury Disaster loans or Home Disaster loans. These includes anything between property damage to loss of businss or lack of work due to flooding.
“Instead of maxing out their credit cards with a 19 percent interest rate, they can apply for a loan with an interest rate as low as 1.8 percent,” Cowell said.
Homeowners can get a loan up to $200,000 for real estate damages and $40,000 to replace any personal property. Renters can also get up to $40,000 for their personal belongs but cannot receive money for the real estate. Business owners can qualify for $2 million in loans for any damage or economic loss.
“If they do not qualify for a loan or are unable to pay it back based on their income they will have to look for a local charity to donate to them and help make the repairs,” Cowell said.
Cowell added that even those with high premiums on their homeowners insurance can apply for a loan to help cover damage they cannot afford.
There are three steps in the process. First is the application, then the SBA will conduct a credit check and an onsite inspection to verify any losses and finally they will send out loan closing documents.
Applying for a loan can be done online, in person or by mail. Applications and SBA personnel will be at the Workforce Lake Building in Lakeport on First Street to help with any questions.
The applications deadline for physical damages is May 19 and for economic injury is Dec. 20 of this year. You can contact the SBA as well at (800) 659-2955 or disastercustomerservice@sba.gov.
