Patrick requests SBA loans to aid Swampscott victims

SWAMPSCOTT – Governor Deval Patrick has requested the Small Business Administration (SBA) provide low interest loans to residents affected by last week’s flash flooding, which Town Administrator Andrew Maylor said was a “positive step” the day after many frustrated residents packed a Selectmen’s Meeting seeking help in the cleanup.”I don’t think we would get the support without the governor weighing in,” he said. “I think it’s the right step and hopefully it will get the attention needed for residents to get help.”Thunderstorms in the early morning of Oct. 7 dropped 5.73 inches of rain on Swampscott within hours, according to the National Weather Service, prompting flooding that made many roads impassible, submerged basements and cars, and caused sewer backups in many homes.But the requirements to qualify homes for relief funds from the Federal Emergency Management are extremely stringent – essentially, major living areas have to be uninhabitable and owners must lack insurance.The threshold of damage for an area to qualify for low interest loans of up to $200,000 from the SBA is much lower, however. There must be damage to a minimum of 25 homes and businesses resulting in uninsured losses of 40 percent or more of the estimated fair replacement value or pre-disaster fair market value of the damaged property, whichever is lower, according to Patrick’s letter.”The Massachusetts Emergency Management Agency (MEMA) has conducted a Preliminary Damage Assessment in Essex County and determined that the damage to this area exceeds the Small Business Administration criteria for a disaster declaration,” said the governor’s letter, dated Oct. 7, but which Maylor said he just received Thursday. “Based on this assessment, I hereby request that the Small Business Administration issue a declaration of physical and economic injury for Essex County so that low interest loans may be available to the affected homes and businesses.”Although the Patrick’s letter does not specifically rule out FEMA funds – which several residents at the Wednesday night Selectmen’s Meeting requested be available – Maylor noted that the letter indicates that the SBA loans were the more likely form of relief.But the SBA has to make a disaster declaration before the loans can be available. Maylor said he didn’t know when such a declaration was likely to happen, but said he hopes the letter helps.”I’m hoping that the fact that the governor’s weighed in and decided that he would support and pushed for a declaration means that we will get the result that residents deserve to get,” Maylor said.Selectman Chair Matthew Strauss agreed.”I would hope that there would be a disaster declaration and hope it could be done quickly so that the cash flow for these residents could be available,” Strauss said.