FEMA, SBA helping flood victims in different ways

By MICHAEL FARRELL

Friday, October 17, 2008

People who own property that sustained damage during the Sept. 12 to 14 flood are urged to register with the Federal Emergency Management Agency.

Mike Sweet, a field specialist with FEMA, said even people with flood insurance should register. To register, call 1-800-621-3362 (FEMA) or go to the FEMA Web site at www.fema.gov.

A mobile FEMA field office has been in Ottawa, but today is the last day for it to operate.

Sweet said FEMA has received about 6,000 registrations in the past week from the seven counties covered by the federal disaster declaration on Oct. 3. Those counties include Grundy, La Salle and Will.

“Even if you have (flood) insurance, register,” Sweet said. People may be underinsured or not have insurance coverage of the contents. Often two flood insurance policies are needed, one to cover the structure and one to cover the contents.”

FEMA has grants available to a maximum of $30,300.

About a week after one registers with FEMA, an inspector will call to set up an appointment to view the property.

“You must provide a telephone number where you can be reached, or you will be passed over and the process will be delayed,” Sweet said.

Anyone not living in their residence should provide the number where they are living or a cellular telephone number.

Inspections are free and take 30 to 40 minutes. Anyone asking for payment is not a FEMA inspector.

Renters will have to show proof of occupancy and owners, proof of ownership, like a property tax receipt.

FEMA can also provide assistance with temporary housing for up to 18 months.

Family members who house a relative cannot collect from FEMA unless they have rental apartments and a signed lease from the relative staying there.

People who do not qualify for a FEMA grant can receive a low-interest loan from the Small Business Administration.

Bonny Wright of the SBA said the word business in the name of the agency should not mislead anyone. The SBA offers low-interest loans to homeowners and renters, as well as businesses.

“We offer assistance for uninsured, underinsured or uncompensated damage,” she said.

Wright urged even people with flood insurance to register with FEMA. She suggested people work with FEMA and the SBA at the same time they are working with their insurance company.

Property owners may not know the extent of damage and how much their insurance will cover. Even if someone applies for an SBA loan, they do not have to take it if they determine it is not needed.

The SBA offers low-interest loans to homeowners and renters to repair damage to real estate and replace personal property, including cars.

Businesses can obtain low-interest loans to repair or replace real estate, machinery, equipment, supplies and inventory. Businesses of any size are eligible, as are non-profit organizations, including churches and charities.

Qualified homeowners can receive SBA loans up to $200,000 for their residence and $40,000 for personnel property. The interest rate can be as low as 2.875 percent.

Businesses can obtain loans up to $2 million, with an interest rate as low as 4 percent.

The amount of any loan cannot exceed the verified loss that is not covered by insurance.

The deadline to file with the SBA is Dec. 2. The SBA Web site is www.sba.gov.

Working capital loans are also available from the SBA to assist businesses and non-profit organizations meet their financial obligations while recovering from the flood. The deadline to file for those types of loans is July 3, 2009.

The SBA also has available loans to make improvements that would mitigate or prevent future damage.

This could include construction of a retaining wall or installing sump pumps. The loan cannot exceed 20 percent of the total amount of damage the individual suffered in the flood.

To obtain an SBA loan, applicants credit history will be considered and individuals must show they have the ability to repay the loan. Collateral is required for loans covering property damage exceeding $14,000 and or $5,000 for loans covering economic loss.

The SBA will not refuse a loan for lack of collateral, but will require the borrower to pledge what is available.

Sweet emphasized people with flood damage should begin removing debris and cleaning their property as soon as possible. It is not necessary to wait for the inspector.

“Mold will grow and it will almost certainly make you sick,” he said.

Bleach will kill mold, so a 50-50 solution should be applied to all areas. Soaked drywall and wet insulation should be removed to prevent mold from growing.

Anyone doing the work themselves should have heavy gloves, eye protection, boots and, preferably, a painter's mask. The bleach will splash and it is important to try and avoid breathing in any existing mold.

Individuals who have lost their job because of the flood can obtain unemployment compensation by contacting the Illinois Department of Employment Security. Even those who were self-employed can qualify.

Sweet suggested even people in low-risk areas consider buying flood insurance. Floods are the most common disaster in the United States and areas are now flooding that never flooded before.

The average cost of flood insurance for a low risk area is about $500 per year.

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