Agency offers low-interest loans for flood recovery effort
By Ed Nadolski
Editor in Chief
Facing an estimated bill of $54,000 to repair his washed out driveway, Mike Ciecko visited the U.S. Small Business Administration Disaster Loan Outreach Center in Burlington Tuesday afternoon hoping for a bit of assistance.
“That’s why I’m here,” Ciecko said.
After completing the steps needed to verify the damage to his property at 5911 Highway DD and finishing an application for a low-interest loan, Ciecko will have to wait for a determination.
He said he was told he may qualify for a loan at less than 2 percent interest rate.
Ciecko said his driveway is about three-fourths of a mile long and needs extensive repair.
“I didn’t know what to expect,” he said of the SBA loan process. “It took longer than I thought.”
Ciecko was among the first wave of people who showed up to apply for disaster loans on Tuesday, the first day outreach centers were open in Racine, Kenosha and Walworth counties.
Faith Rice, a customer service representative at the Burlington center located at the Racine County Service Center, 209 Main St., said homeowners, renters and business owners may apply for loans that start with a low-end interest rate of 1.938 percent that be repaid over a period of up to 30 years.
“You have nothing to lose to come in and inquire,” she said. “People need to know the SBA is here to assist.”
However, she stressed, people also need to know that “it’s a loan that needs to be paid back.”
Rice said each application is considered individually and approvals are based on credit history and repayment ability rather than a credit score.
Governor’s request
Gov. Scott Walker requested assistance from the SBA last week after local officials learned the three-county area did not receive a presidential disaster declaration, which would have made area property owners eligible for flood damage repair grants.
Small Business Administration Administrator Linda McMahon made the loans available in response to Walker’s request. The declaration covers Kenosha, Racine and Walworth counties and the adjacent counties of Jefferson, Milwaukee, Rock and Waukesha in Wisconsin; and Boone, Lake and McHenry in Illinois.
“Getting our businesses and communities up and running after a disaster is our highest priority at SBA,” McMahon said.
SBA Customer Service Representatives are at the Disaster Loan Outreach Centers in Burlington, Bristol and Elkhorn to issue loan applications, answer questions and help individuals complete their applications, according to information provided by the SBA.
The local centers will be open Saturday, Aug. 26, and weekdays through Aug. 31. The deadline for filing a property damage application is Oct. 17.
“Loans up to $200,000 are available to homeowners to repair or replace disaster damaged or destroyed real estate,” said Frank Skaggs, director of SBA’s Disaster Field Operations Center East. “Homeowners and renters are eligible for loans up to $40,000 to repair or replace damaged or destroyed personal property.”
“Businesses and nonprofit organizations may borrow up to $2 million to repair or replace damaged or destroyed real estate, machinery and equipment, inventory, and other business assets,” said SBA Wisconsin District Director Eric Ness.
Low interest rate
Interest rates are as low as 3.215 percent for businesses, 2.5 percent for nonprofit organizations, and 1.938 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 be eligible for a loan amount increase up to 20 percent of their physical damages, as verified by the SBA for mitigation purposes, according to the SBA. Eligible mitigation improvements may now include a safe room or storm shelter to help protect property and occupants from future damage caused by a similar disaster.
For small businesses, small agricultural cooperatives, small aquaculture businesses and private nonprofit organizations, the SBA offers Economic Injury Disaster Loans to help meet working capital needs caused by the disaster. EIDL assistance is available regardless of whether the business suffered any physical property damage.
The deadline for this type of application is May 16, 2018.
Residents who suffered flood damage may apply online via SBA’s secure website at disasterloan.sba.gov/ela.
Businesses and individuals may also obtain information and loan applications by calling the SBA’s Customer Service Center at (800) 659-2955 or by emailing [email protected]. Loan applications can also be downloaded at www.sba.gov/disaster. 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 disaster loan outreach centers are located in the following communities and are open as indicated:
Kenosha County Center
19600 75th St.
Bristol
Hours: weekdays 8 a.m. to 5 p.m.; Saturday, Aug. 26 from 10 a.m. to 2 p.m.
Closes: Thursday, Aug. 31, at 3 p.m.
Racine County
Western Racine County Service Center
209 N. Main St.
Burlington
Hours: weekdays 8 a.m. to 4:30 p.m.; Saturday, Aug. 26, from 10 a.m. to 2 p.m.
Closes: Thursday, Aug. 31, at 2:30 p.m.
Walworth County Sheriff’s Office
Sheriff’s Meeting Room
1770 County Rd., NN
Elkhorn
Hours: weekdays 8 a.m. to 5 p.m.; Saturday, Aug. 26 from 10 a.m. to 2 p.m.
Closes: Thursday, Aug. 31, at 3 p.m.
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