SBA offering flood disaster loans to area residents

Oct. 31, 2006

By Michael Rovito

Frontiersman

WASILLA - Residents and businesses still reeling from the effects of the August floods have an opportunity to recoup their losses through the United States Small Business Administration's low-interest loan program to help flood victims.

A team from SBA is stationed in the Key Bank building on North Lucille Street in Wasilla, waiting to hand out loans, even to those who spent money on repairs, but still need help.

The loans come on the heels of a disaster declaration by President George W. Bush that provided financial assistance only for infrastructure items, such as roads and bridges.

Charmagne Husmann, a public information specialist with the SBA, which is based in Sacramento, Calif., said residents often are confused about who is eligible for a loan from a small business organization. The term &#8220business” often throws them off, she said.

In a news release from the SBA, Alaska district director Karen Forsland said the loans are available to homeowners, renters, businesses of all sizes, and private, nonprofit organizations whose property was damaged or destroyed by flooding.

For residents, up to $200,000 could be received to repair real estate damage and as much as $40,000 to replace personal property. Loan rates can run as low as 3.125 percent.

Those wanting to seek out a loan, according to Husmann, can come to the Key Bank building's second floor, dubbed the Disaster Loan Outreach Center, Tuesdays through Fridays from 8:30 a.m. to 5 p.m., and Saturdays from 10 a.m. to 1:30 p.m.

The SBA team will be in town through Nov. 15, after which loan-seekers can call 1-800-659-2955 for assistance. The number also can be called while the team is in Wasilla.

The organization also will set up a station from 10:30 a.m. to 5 p.m. at the public library at the Willow Community Center on Wednesday and Nov. 8.

Small businesses that didn't sustain physical damage, but lost money because of the disruption in business can apply for a working capital loan, worth up to $1.5 million, which will look at past profits to determine how much compensation will be awarded for money lost during and after the flood.

Beyond the Mat-Su Borough, neighboring communities from Copper River to the Denali Borough also are eligible for the loans.