Virginia Governor Kaine Requests SBA Declaration to Provide Loans for Disaster Assistance

August 16, 2006; 03:22 AM

RICHMOND – Virginia Governor Timothy M. Kaine today asked the U.S. Small Business Administration to clear the way for emergency low-interest loans to homeowners and renters who had major damage in the June and July severe weather.

On August 11, FEMA declined the Governor’s appeal of the agency’s refusal to grant Individual Assistance to affected property owners. FEMA had earlier approved Public Assistance, which provides financial assistance for damage to roads, bridges and other government infrastructure, plus aid to certain private nonprofits for the counties of Arlington, Bath, Botetourt, Craig, Dickenson, Fairfax, Floyd, Henry, Highland King George and Rockbridge and also in the city of Alexandria.

“There are hundreds of families who still face significant financial challenges to repair flood damage to their homes or rental units,” said the Governor. “Low-interest loans from the Small Business Administration would offer some assistance and support to many Virginians facing major repairs to their homes.”

The SBA can provide Real Property Loans of up to $200,000 to homeowners or renters to repair or restore their primary home to its pre-disaster condition. Also, the agency can authorize Personal Property Loans to provide homeowners or renters with up to $40,000 to help repair or replace personal property, such as clothing, furniture and automobiles, lost in the disaster. In addition, businesses suffering damage could receive loans of up to $1.5 million to help repair or replace damaged property.