Low-interest disaster loans available for Magoffin businesses & individuals
Photo from Andrea Henry Castle of damages from the February flooding
SALYERSVILLE – While Magoffin does not qualify for federal assistance for individuals with flood damages, residents and businesses in the county are now eligible for low-interest disaster loans.
The U.S. Small Business Administration announced on Thursday, April 4 that Kentucky businesses and residents affected by severe storms and flooding on February 6 through March 10 can apply for low-interest disaster loans.
According to the press release, U.S. Small Business Administration Administrator Linda McMahon made the loans available in response to a letter from Kentucky Governor’s Authorized Representative Michael E. Dossett on April 1, requesting a disaster declaration by the SBA. The declaration covers Johnson and Magoffin counties, the two hardest-hit in the February flooding, as well as the adjacent counties of Breathitt, Floyd, Knott, Lawrence, Martin, Morgan and Wolfe.
“With the approval of Kentucky’s request for federal assistance, the Small Business Administration is providing a much-needed opportunity for recovery funding to the citizens of Eastern Kentucky,” Dossett said. “Many individuals and businesses will benefit greatly from the federal disaster loans that SBA offers as they continue to recover following the devasting storms and flooding that heavily damaged parts of the community.”
SBA set up customer service representatives in both Johnson and Magoffin counties to answer questions about the disaster loan program and help individuals complete their applications.
Sandra Lawson, the SBA public affairs specialist working at the local disaster center told the Independent on Wednesday that as of Tuesday evening, they have had 23 people apply for disaster loans. She also reminded the public that they can apply for disaster loans even after April 12, by applying online or downloading the application at https://disasterloan.sba.gov/ela, calling the SBA’s Customer Service Center at 800-659-2955 or email email@example.com for more information on SBA disaster assistance. Individuals who are deaf or hard-of-hearing may call (800) 877-8339. Completed applications should be mailed to U.S. Small Business Administration, Processing and Disbursement Center, 14925 Kingsport Road, Fort Worth, TX 76155.
The Disaster Loan Outreach Centers will remain open through tomorrow, April 12, at the following locations, from 9 a.m. to 6 p.m. on April 11 and 9 a.m. to 4 p.m. on April 12.:
Johnson County Fiscal Court
230 Court St., Suite 201
Paintsville, KY 41240
Magoffin County Health Department
132 East Mountain Parkway
Salyersville, KY 41465
More from the press release:
Businesses and private nonprofit organizations may borrow up to $2 million to repair or replace disaster damaged or destroyed real estate, machinery and equipment, inventory, and other business assets.
For small businesses, small agricultural cooperatives, small businesses engaged in aquaculture and most private nonprofit organizations, the SBA offers Economic Injury Disaster Loans to help meet working capital needs caused by the disaster. Economic Injury Disaster Loan assistance is available regardless of whether the business suffered any physical property damage.
“Loans up to $200,000 are available to homeowners to repair or replace damaged or destroyed real estate. Homeowners and renters are eligible for loans up to $40,000 to repair or replace damaged or destroyed personal property,” said Kem Fleming, center director of SBA’s Field Operations Center East in Atlanta.
Applicants may be eligible for a loan amount increase up to 20 percent of their physical damages, as verified by the SBA for mitigation purposes. Eligible mitigation improvements may include a safe room or storm shelter, sump pump, French drain or retaining wall to help protect property and occupants from future damage caused by a similar disaster.
Interest rates are as low as 4 percent for businesses, 2.75 percent for nonprofit organizations, and 2.063 percent for homeowners and renters with terms up to 30 years.
Loan amount and terms are set by the SBA and are based on each applicant’s financial condition.
Applicants may apply online using the Electronic Loan Application (ELA) via SBA’s secure website at DisasterLoan.sba.gov.
Businesses and individuals may also obtain information and loan applications by calling the SBA’s Customer Service Center at 1-800-659-2955 (1-800-877-8339 for the deaf and hard-of-hearing), or by emailing firstname.lastname@example.org (link sends e-mail). Loan applications can also be downloaded at www.sba.gov. Completed applications should be returned to the centers or mailed to: U.S. Small Business Administration, Processing and Disbursement Center, 14925 Kingsport Road, Fort Worth, TX 76155.
The filing deadline to return applications for physical property damage is June 3, 2019. The deadline to return economic injury applications is Jan. 3, 2020.