Got flood damage? SBA may have a loan for you

Funding for homeowners and renters struggling to pay for flood repairs has come in the form of loans provided by the U.S. Small Business Administration.

Applications for the loans are due as early as March 30.

The loans cover up to $200,000 worth of repairs or replacement to homes and $40,000 to replace personal property for homeowners and renters. Rates for the home loans are as low as 1.938 percent.

Though the SBA is typically a financial resource for local start-ups, disaster loans like these have been in the agency’s wheelhouse since the 1950s, said Garth MacDonald, a spokesman for the administration’s Office of Disaster Assistance.

“Our funds are a major portion of what helps communities recover,” MacDonald said. “Our federal low-interest loans are the primary long-term recovery money.”

Applying for loans, MacDonald said, is completely free. Homeowners who feel they could use the funds but aren’t sure if it’s the right decision are encouraged to apply anyway, he added.

“It’s one key source they don’t want to avoid or not bother to apply for at least by the deadline,” he said. “That way, they at least keep their options open.”

The deadline to apply for physical damage is March 30 or Oct. 29 for economic injury.

Access to the loans came last week at the request of Gov. Jay Inslee, citing “catastrophic physical damage” as a result of the mudslides.

The direct federal loans are designed for homeowners and renters following federal disasters. The program also allows small businesses to borrow up to $2 million for any property damage or economic loss that resulted in the flood, like having to remain closed for days following the flood. Most private non-profits are also eligible.

“The lifeblood of this community is its residents and businesses,” Inslee said in a statement. “That’s evident by the way local recovery groups have banded together to help their neighbors and communities. With that said — this area needs an additional hand up to get those impacted by the storm back on their feet. The loss is tremendous, and the SBA programs would provide access to funding to help replace what was lost, and make homes livable again.”