SBA: Funding available for damages from Oct. 4 floods

SWAMPSCOTT – The Small Business Administration has made a disaster declaration for Essex County as a result of the Oct. 4 storms and flooding.The declaration makes residents and businesses eligible for low-interest loans to repair uninsured damages, according to an administration press release.”I was pleased that they did declare money available to borrow,” said Selectmen Chair Matthew Strauss. “I would have been more pleased if MEMA had come forward with ?free money’ if you will, but I’m pleased that there is something.”Thunderstorms in the early morning of Oct. 4 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.According to a fact sheet provided by the SBA, there are three types of loans available. Home disaster loans and business physical disaster loans are available to homeowners and renters and businesses, respectively, to replace disaster-damaged real estate or property. Economic injury diaster loans are also available for small businesses, most nonprofit organizatons and other qualifying organizations with meeting financial obligations.Home loans are available for up to $200,000. Other types of loan have a ceiling of $2 million.Interest rates range from 2.5 percent to 6 percent, depending on whether the applicant has credit available elsewhere, and loan terms can range from three to 30 years.Loan applications must be filed by Dec. 12 if seeking assistance for physical damages, and by next July 13 if claiming economic injury. For more information or to apply online, visit the SBA’s website at www.sba.gov.Interim Fire Chief Jim Potts said that this would be the only federal governmental assistance available to residents, as the damage did not reach the threshold required for Federal Emergency Management Agency grants.”This is all they’re going to do,” Potts said. “I hope it helps somebody. There were some places that got some serious water.”Representatives from the Massachusetts Emergency Management Agency did not return calls for comment, but SBA Press Representative Michael Lampton said that it was not likely that other sources of funds would be available.