Disaster Declaration for Tornado Damage Makes Federal Loans Available

TOWSON: Area residents affected by severe storms and a tornado on Nov. 17 may apply for low-interest disaster loans from the U.S. Small Business Administration, Baltimore County announced in a press release Friday.

The Small Business Association made the loans available after Gov. Martin O'Malley requested a disaster declaration for Baltimore City and Baltimore and Anne Arundel County.

The SBA says 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, according to the press release.

SBA customer service representatives will be available at a Disaster Loan Outreach Center to answer questions about the disaster loan program, explain the process and help people complete their applications.

The filing deadline to return applications for physical property damage is Feb. 7, 2011. The deadline to return economic injury applications is Sept. 9, 2011.

The Outreach Center will be located at W.E.B. DuBois High School, Cafeteria Entrance, 2201 Pinewood Ave., Baltimore, 21214. It will be open Dec. 14 through Dec. 20, 7:30 a.m. to 4 p.m. The Center will be closed Dec. 18 and Dec. 19.

The SBA said businesses and non-profit organizations of any size may borrow up toe $2 million to repair or replace damaged or destroyed real estate, machinery and equipment, inventory and other assets.

The SBA may increase a loan up to 20 percent of the total amount of disaster damage to real estate and/or leasehold improvements, as verified by SBA, to make improvements that lessen the risk of property damage by future disasters of the same kind.

For small businesses and most private non-profit organizations of all sizes, the SBA offers Economic Injury Disaster Loans (EIDLs) to help meet working capital needs caused by the disaster. EIDL assistance is available regardless of whether the business suffered any physical property damage. Interest rates are as low as 2.25 percent for homeowners and renters, 3 percent for non-profit organizations and 4 percent for businesses with terms up to 30 years.

Loan amounts and terms are set by the SBA and are based on each applicant's financial condition.

Individuals and businesses unable to visit the Center may obtain information on loan applications by calling the SBA's Customer Service Center at 800-659-2955 (800-877-8339 for people with speech or hearing disabilities), Monday through Friday from 8 a.m. to 6 p.m. ET or by sending an e-mail to disastercustomerservice@sba.gov. Business loan applications can also be downloaded from the SBA website atwww.sba.gov.

Completed applications should be returned to the Center or mailed to: U.S. Small Business Administration, Processing and Disbursement Center, 14925 Kingsport Road, Fort Worth, TX 76155.