Published: May 06, 2008 03:44 pm            

SBA approves disaster loan effort for tornado

Monticello — Wayne County residents affected by the tornado that damaged homes and

businesses last month may be eligible for disaster loan assistance.

The Small Business Administration made the disaster declaration, after

receiving an April 22 letter from Kentucky Governor Steve Beshear. The

disaster area includes Wayne County and the adjacent counties of Clinton,

McCreary, Pulaski and Russell in Kentucky, as well as Pickett and Scott

counties in Tennessee.

County officials have been working on getting assistance for local

residents, after an EF-2 tornado, with estimated winds of 130 miles per

hour, damaged at least 34 homes, as well as numerous barns on Friday, April

11. The tornado stayed on the ground for approximately seven miles as it

moved through the county and at one point was approximately a quarter-mile

wide.

SBA representatives have set up a Disaster Loan Outreach Center at the

Wayne County Courthouse to take applications from local residents. They will

be available Monday through Friday from 8 a.m. until 5 p.m. through May 15.

There will also be one Saturday session, from 9 a.m. to 1 p.m., according to

County Judge-Executive Greg Rankin.

Residents, both homeowners and renters, are eligible for loans up to

$40,000 to repair or replace damaged or destroyed personal property,

according to Frank Skaggs, Director of Disaster Field Operations Center

East. Loans of up to $200,000 are available to homeowners to repair or

replace damaged or destroyed real estate.

"SBA Customer Service Representatives will be on hand at the Disaster

Loan Outreach Center to issue loan applications, answer questions about the

SBA's loan program, explain the application process and help individuals

complete their applications," said Skaggs.

Steven Ayers, SBA's Kentucky District Director stresses, "Low-interest

federal disaster loans are available to renters, homeowners, businesses of

all sizes and private non-profit organizations whose property was damaged or

destroyed by the severe storms, flooding and tornadoes."

Businesses of any size and private non-profit organizations may borrow

up to $1.5 million to repair or replace damage or destroyed real estate,

machinery, equipment, inventory and other business assets. The SBA can also

lend additional funds to help with the cost of making improvements that

protect, prevent, or minimize the same type of disaster damage in the

future.

For small businesses only, 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.

Interest rates are as low as 2.750 percent for homeowners and renters

and 4 percent for businesses, with terms up to 30 years. Loan amounts and

terms are set by the SBA and are based upon each applicant's financial

condition.

Additional information may be obtained by calling 1,800-659-2955.

The filing deadline to return applications for physical property damage

is June 27, 2008. The deadline to return economic injury applications is

January 28, 2009.

        

• Click to discuss this story with other readers on our forums.