Federal loans will be available for Riverhead flood victims

Flood victims in the Horton and Osborn neighborhood and elsewhere in Riverhead Town will be eligible for federal loans to help them recover from the monster storm that inundated the town in late March.
Governor David Paterson announced Tuesday the federal Small Business Administration has approved his request to issue what’s called a physical and economic injury disaster declaration for storm-ravaged Long Island.
Now Suffolk and Nassau renters, homeowners and business owners will be eligible for the low-interest loans for damages suffered in storms that hit between March 12 to March 30.
“I thank the SBA for its quick response to our request for
low-interest loans to help speed the recovery for homeowners and
businesses who were devastated by the floods,” Mr. Paterson said in a release.
While damages to the region in the late-March storm did not meet the Federal Emergency Management Agency’s criteria for a disaster declaration, which would have made more aid available, “assessments showed 429 homes and 38 businesses
surveyed suffered uninsured losses of 40 percent or more of their
estimate pre-disaster fair market value,” the release read.
The loans, up to $40,000 to replace goods or cars and $200,000 for repairs to pay for a primary residence, can be used for costs not covered by insurance. Business could borrow up to $2 million for various damages.
“SBA loans are one more tool to help our community rebuild from this devastating storm system,” said Congressman Tim Bishop (D-Southampton), whose office had been pushing for a disaster declaration for the region. “I encourage everyone from our area who suffered damage to their home or business to visit and apply for this assistance.”
Borrowers must have a credit history acceptable to the federal agency and have the means to pay back the loan, Mr. Bishop noted.

Click here to download SBA Disaster Relief Fact Sheet (PDF)

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