PROVIDENCE – The U.S. Small Business Association has issued a disaster declaration for Rhode Island for damage sustained during Tropical Storm Irene in August.
Administrator Karen A. Mills issued the declaration Sept. 26, a week after Gov. Lincoln D. Chafee formally requested that the SBA issue a declaration of disaster so that low-interest loans could be made to affected households, businesses and building owners.
Rhode Island's Market Has Changed. Developers, Builders, Investors and Sellers Must Change With It.
By Emilio DiSpirito IV License Partner | Engel & Völkers Oceanside Leader | The DiSpirito…
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The following counties have been found to have been adversely affected by the storm system: Bristol, Kent and Providence Counties in Rhode Island; Windham County in Connecticut; and Bristol, Norfolk and Worcester Counties in Massachusetts.
Applications for the disaster loans may be filed at the Disaster Loan Outreach Center in Providence or mailed to the SBA processing and disbursement center in Fort Worth, Texas. The application deadlines are Nov. 25 for physical damage and June 26, 2012, for economic damage.
The Disaster Loan Outreach Center is located at the local SBA office at 380 Westminster St., Suite 511.
The types of loans that are available are:
- Home Disaster Loans – Loans to homeowners or renters to repair or replace disaster-damaged real estate or personal property owned by the victim. Renters are eligible for their personal property losses, including automobiles.
- Business Physical Disaster Loans – Loans to businesses to repair or replace disaster-damaged property owned by the business, including real estate, inventories, supplies, machinery and equipment. Businesses of any size are eligible. Private, nonprofit organizations such as charities, churches and private universities are also eligible.
- Economic Injury Disaster Loans – Working capital loans to help small businesses, small agricultural cooperatives, small businesses engaged in aquaculture and most private, nonprofit organizations of all sizes to meet necessary financial obligations that cannot be met as a direct result of the disaster.
Applicants must have a credit history acceptable to the SBA and show the ability to repay all loans.
Collateral is required for physical loss loans greater than $14,000 and all EIDL loans greater than $5,000. The SBA takes real estate as collateral when it is available. SBA will not decline a loan for lack of collateral, but requires you to pledge what is available.
The interest rates depend on whether each applicant has credit available elsewhere, as determined by the SBA, with those not having credit available given a lower interest rate on loans.
Only uninsured or otherwise uncompensated disaster losses are eligible. Any insurance proceeds that are required to be applied against outstanding mortgages are not available to fund disaster repairs and do not reduce loan eligibility. However, any insurance proceeds voluntarily applied to any outstanding mortgages do reduce loan eligibility.
For more information, contact SBA’s Disaster Assistance Customer Service Center by calling (800) 659-2955, emailing disastercustomerservice@sba.gov, or visiting SBA’s Web site at www.sba.gov. Deaf and hard-of-hearing individuals may call (800) 877-8339.
