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Virginia Department of Emergency Management
10501 Trade Court, Richmond, VA 23236
CONTACT: Bob Spieldenner, VDEM (804) 674-2400
Kevin Hall, Office of the Governor (804) 225-4260; Cell: (804) 393-9406
FOR IMMEDIATE RELEASE
Oct. 16, 2006
Richmond, VA -- Governor Timothy M. Kaine announced today that the U.S. Small Business Administration has approved a request for low-interest loans to homeowners and renters in localities who sustained major damage from Tropical Depression Ernesto. The storm, which began on August 29, caused seven deaths and an estimated $118 million in damage, primarily in central and eastern Virginia.
"I am pleased that the SBA has made this assistance available to those individuals who have lost their homes and belongings to the flooding caused by Ernesto," said Governor Kaine. " These favorable-interest SBA loans will be important to many of our citizens who are still struggling to repair and rebuild their property following the recent storms and floods."
The loans were approved for renters and homeowners in the counties of Gloucester and Northumberland and the cities of Hampton, Newport News and Richmond. Residents in adjacent localities are automatically eligible to apply for these loans as well. The adjacent localities are the counties of Chesterfield, Henrico, James City, King and Queen, Lancaster, Mathews, Middlesex, Richmond, Westmoreland and York and the city of Poquoson.
There are two types of SBA low-interest residential loans for which individuals can apply. Homeowners are eligible for Real Property Loans of up to $200,000 to repair or restore a primary home to its pre-disaster condition. Personal Property Loans can also 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 can apply for loans to help repair or replace damaged property as well as for loss of business.
Interest rates for homeowners and renters range from 3.125 to 6.250 percent depending on credit availability. Rates for businesses and nonprofit organizations range from four to 7.934 percent depending on credit availability.
Details on how individuals, businesses and nonprofits can apply for assistance will be announced soon by the SBA.
FEMA earlier declined Governor Kaine's request and subsequent appeal for Individual Assistance to people and businesses affected by the storm. FEMA also earlier approved Public Assistance for the counties of Accomack, Caroline, Charles City, Dinwiddie, Essex, Gloucester, Isle of Wight, James City, King William, Lancaster, Mathews, Middlesex, Northampton, Northumberland, Richmond, Surry, Sussex, Westmoreland and York, and the cities of Newport News, Poquoson and Richmond. The Public Assistance program provides financial assistance for damage to roads, bridges and other government infrastructure, plus aid to certain private nonprofits.
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