Business owners and residents of St. Louis, St. Louis and St. Charles counties can apply for low-interest federal loans to help cover uninsured losses from last month’s flash floods.
The Small Business Administration offers home, business, and economic disaster loans to help pay for losses that federal grants or insurance won’t cover.
Most people don’t know how much water damage can cost a business owner or homeowner, SBA spokesperson Sushell Kumar said.
“One inch of water can cause up to $25,000 in damage, and that’s on the owner’s side,” Kumar said. “On the business side, one in four businesses that remain closed for the first five days after the disaster has a 90% probability of failure.”
Through the SBA:
- Business owners, including private nonprofit owners, are eligible for loans of up to $2 million to replace damaged property, equipment, inventory or other business assets.
- Homeowners can borrow up to $200,000 to repair or replace their principal residence.
- Homeowners or tenants can borrow up to $40,000 to repair personal property.
- Interest rates for homeowners or renters are as low as 1.68%. Rates for private nonprofit owners will be as low as 1.87% and 2.93% for business owners. Borrowers must repay disaster loans within 30 years.
Individuals without insurance who are interested in a federal disaster loan should first apply for assistance through the Federal Emergency Management Agency website. Uninsured flood victims who are not covered by FEMA can apply for a low-interest loan. SBA ready for repairs.
SBA officers will then perform a credit check, assess the damages, and determine how much an applicant can borrow.
SBA loans will be issued within four weeks of an application being approved.
“If you don’t have insurance, SBA is your source for recovery, rehabilitation, or repair,” Kumar said.
Last month’s floods damaged more than 750 homes and more than 130 businesses. Officials estimated at least $35 million in uninsured property damage and emergency response costs.
Missouri business owners in Franklin, Jefferson, Lincoln and Warren counties can apply for a disaster loan if their business has lost business due to flooding. Business owners in the Illinois counties of Calhoun, Jersey, Madison, Monroe, and St. Clair can also apply for an economic disaster loan.
The devastation of property loss is great in the St. Louis area, and low-interest loans can help families and businesses get back on their feet quickly, the SBA spokesperson said, Rae Logan.
“If you have $100,000 in damages and the insurance company gives you $25,000, then our loans can help fill that gap,” Logan said.
People whose homes or businesses were damaged have until October 7 to apply for assistance, and those who have suffered economic loss have until May 8, 2023 to apply for a federal economic injury loan.
Businesses and homeowners can also apply for mitigation loans to improve their properties to protect them from future flooding.
Moreover, the American Red Cross of Missouri provides pop-up resource centers for flood victims to help them with legal services, food stamps and other disaster information.
People can also contact the United Way 211 for help with housing, food and health or child care.
Residents and business owners of St. Louis and St. Louis County who need more resources to deal with flood damage should visit here.
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