Juneau residents, business, and nonprofit organizations that were impacted by floods caused by glacial eruptions in August could be eligible for federal assistance through an interest-free federal loan by the U.S. Small Business Administration.
The agency intervened following they were told that Federal Emergency Management Agency denied requests for assistance in the late part of September. The Public information officer Garth MacDonald said the agency’s loan program could help those or businesses impacted by natural disasters that don’t be able to meet FEMA requirements.
“Our low-interest loans are actually the main source of federal recovery funds for longer-term rehabilitation,” MacDonald said. “And our objective is to to help people reach as close to pre-disaster conditions as they can.”
The agency has established an emergency disaster loan outreach Center located at Dimond Park Aquatic Center. Dimond Park Aquatic Center, which is where a customer service representative will be on hand to answer questions and assist in completing applications through October. 24.
Non-profits and businesses are eligible for loans of between $2 and 2 million to repair or replace damaged or destroyed properties and inventory for business, while renters and homeowners are eligible for loans of up to $500,000 or $100,000 to reconstruct the homes they live in, or replace items that were destroyed during the flood.
The eligibility for these loans is subject to certain criteria for credit, however rates of interest are very low between 2.5 percent and 4.4%, with terms that range from 30 years. The applicants who are approved for loans are exempt from having to make payments and will not accrue interest for the year following they have received their money.
According to MacDonald the type of loan tends to be less flexible than payouts from insurance and other types of state and federal assistance for disasters. For instance, a certain percentage of the loan could be used to fund mitigation projects to safeguard properties from floods in the future. Therefore, although loans cannot be used for rebuilding the land, bank stabilization or fortification works may be eligible.
A lot of people have already put cash into repairs however, loans could be a source of relief. The loan funds can serve to repay a personal loan or a line of credit that has a higher rate of interest.
“Don’t believe that you’re never getting what you need. Don’t think you’re going to be rejected,” MacDonald said. “Apply, apply, apply.”
People who wish to apply can also find more information at disasterloanassistance.sba.gov or via SBA’s customer service line: (800) 659-2955.
The deadline for loan applications to help cover personal property damage is December. 5 2023. Non-profits or businesses can apply up to July 8, 2024.
