FEMA, SBA helping flood victims in different ways

[Guest guest]

FEMA, SBA helping flood victims in different ways

Grants, loans available to homeowners, renters, businesspersons

Daily Herald - ,IL*

By MICHAEL FARRELL

Herald Writer

Friday, October 17, 2008 :

http://www.morrisdailyherald.com/articles/2008/10/18/news/323aactyfem

asba.txt

People who own property that sustained damage during the Sept. 12 to

14 flood are urged to register with the Federal Emergency Management

Agency.

Mike Sweet, a field specialist with FEMA, said even people with

flood insurance should register. To register, call 1-800-621-3362

(FEMA) or go to the FEMA Web site at www.fema.gov.

A mobile FEMA field office has been in Ottawa, but today is the last

day for it to operate.

Sweet said FEMA has received about 6,000 registrations in the past

week from the seven counties covered by the federal disaster

declaration on Oct. 3. Those counties include Grundy, La Salle and

Will.

" Even if you have (flood) insurance, register, " Sweet said. People

may be underinsured or not have insurance coverage of the contents.

Often two flood insurance policies are needed, one to cover the

structure and one to cover the contents. "

FEMA has grants available to a maximum of $30,300.

About a week after one registers with FEMA, an inspector will call

to set up an appointment to view the property.

" You must provide a telephone number where you can be reached, or

you will be passed over and the process will be delayed, " Sweet said.

Anyone not living in their residence should provide the number where

they are living or a cellular telephone number.

Inspections are free and take 30 to 40 minutes. Anyone asking for

payment is not a FEMA inspector.

Renters will have to show proof of occupancy and owners, proof of

ownership, like a property tax receipt.

FEMA can also provide assistance with temporary housing for up to 18

months.

Family members who house a relative cannot collect from FEMA unless

they have rental apartments and a signed lease from the relative

staying there.

People who do not qualify for a FEMA grant can receive a low-

interest loan from the Small Business Administration.

Bonny of the SBA said the word business in the name of the

agency should not mislead anyone. The SBA offers low-interest loans

to homeowners and renters, as well as businesses.

" We offer assistance for uninsured, underinsured or uncompensated

damage, " she said.

urged even people with flood insurance to register with FEMA.

She suggested people work with FEMA and the SBA at the same time

they are working with their insurance company.

Property owners may not know the extent of damage and how much their

insurance will cover. Even if someone applies for an SBA loan, they

do not have to take it if they determine it is not needed.

The SBA offers low-interest loans to homeowners and renters to

repair damage to real estate and replace personal property,

including cars.

Businesses can obtain low-interest loans to repair or replace real

estate, machinery, equipment, supplies and inventory. Businesses of

any size are eligible, as are non-profit organizations, including

churches and charities.

Qualified homeowners can receive SBA loans up to $200,000 for their

residence and $40,000 for personnel property. The interest rate can

be as low as 2.875 percent.

Businesses can obtain loans up to $2 million, with an interest rate

as low as 4 percent.

The amount of any loan cannot exceed the verified loss that is not

covered by insurance.

The deadline to file with the SBA is Dec. 2. The SBA Web site is

www.sba.gov.

Working capital loans are also available from the SBA to assist

businesses and non-profit organizations meet their financial

obligations while recovering from the flood. The deadline to file

for those types of loans is July 3, 2009.

The SBA also has available loans to make improvements that would

mitigate or prevent future damage.

This could include construction of a retaining wall or installing

sump pumps. The loan cannot exceed 20 percent of the total amount of

damage the individual suffered in the flood.

To obtain an SBA loan, applicants credit history will be considered

and individuals must show they have the ability to repay the loan.

Collateral is required for loans covering property damage exceeding

$14,000 and or $5,000 for loans covering economic loss.

The SBA will not refuse a loan for lack of collateral, but will

require the borrower to pledge what is available.

Sweet emphasized people with flood damage should begin removing

debris and cleaning their property as soon as possible. It is not

necessary to wait for the inspector.

" Mold will grow and it will almost certainly make you sick, " he said.

Bleach will kill mold, so a 50-50 solution should be applied to all

areas. Soaked drywall and wet insulation should be removed to

prevent mold from growing.

Anyone doing the work themselves should have heavy gloves, eye

protection, boots and, preferably, a painter's mask. The bleach will

splash and it is important to try and avoid breathing in any

existing mold.

Individuals who have lost their job because of the flood can obtain

unemployment compensation by contacting the Illinois Department of

Employment Security. Even those who were self-employed can qualify.

Sweet suggested even people in low-risk areas consider buying flood

insurance. Floods are the most common disaster in the United States

and areas are now flooding that never flooded before.

The average cost of flood insurance for a low risk area is about

$500 per year.