Low-Interest Disaster Recovery Loans Available to Help Accomack County Rebuild from Hurricane Sandy

December 4, 2015  //  

VDEM Press Release

10501 Trade Court
Richmond, Virginia 23226

FOR IMMEDIATE RELEASE

Dec. 04, 2015

CONTACT: Dawn Eischen
(804)  897-6510 or (804) 674-2400
Dawn.Eischen@vdem.virginia.gov

RICHMOND, Va. – The U.S. Small Business Administration (SBA) is offering low-interest disaster loans to qualified Accomack County businesses, individuals and renters who failed to seek help after Hurricane Sandy in October 2012.

“We are pleased residents and business owners in Accomack County will receive this assistance,” said State Coordinator Dr. Jeff Stern. “More than 240 homes were damaged in Accomack County and most of the damage was not covered by insurance.” During Hurricane Sandy, Accomack County was hit with hurricane-force winds and received nearly 8.5 inches of rain, which was among the highest on the East Coast, according to the National Oceanic and Atmospheric Administration.

The SBA will open a Disaster Loan Outreach Center at noon on Dec. 7 at the Eastern Shore Regional Fire Training Center, 28598 Beacon Road, Melfa, VA 23410. Office hours will be Monday through Friday, 8 a.m. to 5 p.m., until further notice, and closed on Saturdays and Sundays. SBA’s customer service representatives will be on hand at the center to answer questions about the disaster loan program, explain the process, and issue and help individuals complete their applications.
Businesses and nonprofit organizations may borrow up to $2 million to repair or replace damaged or destroyed real estate, machinery and equipment, inventory, and other business assets.

For small businesses, small agricultural cooperatives, small businesses engaged in aquaculture and most private nonprofit organizations, the SBA offers Economic Injury Disaster Loans to help meet working capital needs caused by the disaster. Economic Injury Disaster Loan assistance is available regardless of whether the business suffered any physical property damage.

Loans up to $200,000 are available to homeowners to repair or replace damaged or destroyed real estate. Homeowners and renters are eligible for loans up to $40,000 to repair or replace damaged or destroyed personal property. Interest rates are as low as 4 percent for businesses, 3 percent for nonprofit organizations, and 1.688 percent for homeowners and renters with terms up to 30 years. Loan amount and terms are set by the SBA and are based on each applicant’s financial condition.

Earlier this year, Congress passed legislation titled “Recovery Improvements for Small Entities After Disaster Act of 2015,” also known as Sandy RISE. The act itself says the SBA “was challenged by an unexpectedly high volume of loan applications that it received early in its response to Superstorm Sandy. As a result, many businesses and homeowners affected by Superstorm Sandy were unable to apply for financing” from the SBA.

A unique feature of these low-interest loans is that they can be used to construct a safe room or similar storm shelter to protect property and occupants from tornadoes or other natural disasters if the safe room or shelter is built according to standards of the Federal Emergency Management Agency. The loans can also cover the cost of building retaining walls and sea walls, grading and contouring land and relocating utilities and modifying structures.

Applicants may also apply online using the Electronic Loan Application via SBA’s secure website at https://disasterloan.sba.gov/ela. Disaster loan information and applications may also be obtained by calling the SBA’s Customer Service Center at 1-800-659-2955 (1-800-877-8339 for the deaf and hard-of-hearing) or by emailing disastercustomerservice@sba.gov. Loan applications can also be downloaded at www.sba.gov/disaster. Completed applications should be mailed to: U.S. Small Business Administration, Processing and Disbursement Center, 14925 Kingsport Road, Fort Worth, TX 76155.

 

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Be ready. Be willing to help.

Virginia Disaster Relief Fund