Small Business Administration Approves Connecticut Governor's Request for Disaster Assistance

July 17, 2006; 03:13 AM

Connecticut Governor M. Jodi Rell announced that the U.S. Small Business Administration has approved her request for a disaster declaration for five Connecticut counties in response to the record June flooding. Homeowners, renters, and businesses affected by the floods in Fairfield, Hartford, Litchfield, Middlesex and New Haven Counties are now eligible for low-interest federal loans.

Although the SBA awarded the primary declaration for New Haven County based on damage assessments, residents in all contiguous counties are now eligible for the same assistance under SBA regulations. Individuals and businesses in the five Connecticut counties may now apply for SBA loans.

“I am extremely grateful for SBA’s quick and comprehensive response to the needs of Connecticut property owners.” said Governor Rell. “The infrastructure damage I viewed in Waterbury was extensive and will cost millions of dollars to repair. Towns across the state suffered as well. I encourage all affected residents and business owners to take advantage of these low-interest loans to help put their properties and livelihoods back in order.”

Last month, Governor Rell and Waterbury Mayor Michael J. Jarjura announced that preliminary damage estimates of the June 2-3 flash flooding in the city totaled $4.4 million. Other towns in Greater Waterbury had estimated damage totaling more than $600,000 from the storm, which dumped up to 7 inches of rain on the region in three hours.

SBA offers loans up to $200,000 to repair disaster-damaged primary residences. Homeowners and renters are eligible for loans up to $40,000 to replace personal property such as furniture, clothing and automobiles. Loans to businesses of all sizes and non-profit organizations are available up to $1.5 million to repair damaged real estate, machinery, equipment and inventory. Economic Injury Disaster Loans are also available to small businesses unable to pay bills or meet operating expenses.

Interest rates can be as low as 2.93 percent for homeowners and renters and 4 percent for businesses with terms up to 30 years. Loan amounts and terms are set by SBA and are based upon each applicant’s financial condition and the amount of uninsured losses.

Governor Rell strongly encouraged all homeowners, renters or businesses who may be interested in a low-interest loan to apply as soon as possible and not to wait for insurance settlements or contractor estimates.

The deadline for applications for SBA physical damage loans is September 11, 2006.

Homeowners, renters, and businesses may request applications and additional information from the Small Business Administration by calling SBA’s customer service center at 1-800-659-2955 daily from 6 a.m. to 11 p.m., or visit the Web site at www.sba.gov/disaster .

On June 5, Governor Rell directed the Connecticut Department of Emergency Management and Homeland Security (DEMHS) to coordinate and complete a comprehensive damage assessment of heavy rains and major flooding in Greater Waterbury and throughout Connecticut, a key first step in applying for federal assistance to help municipalities pay for repairs.