Virginia Governor Ralph Northam announced last week that the U.S. Small Business Administration will make low-interest federal loans available to residents and business owners in the City of Falls Church to help with recovery from the impacts from last month’s flood.
Residents and business owners in Fairfax County, Arlington County and the City of Alexandria may also apply for loans to help with the July 8 flooding.
The topic of the loans was brought up during last Wednesday’s town hall meeting at City Hall which more than 40 residents attended, the City reported.
“Substantial flooding last month caused extensive damage to many homes and businesses in Northern Virginia,” said Governor Northam. “We appreciate the Small Business Administration approving our request for financial assistance to help Virginians get back on their feet and move forward as quickly as possible. We will continue working in close coordination with the affected communities to support their recovery.”
Businesses and private nonprofit organizations may borrow up to $2 million through the SBA to repair or replace disaster damaged or destroyed real estate, machinery and equipment, inventory and other business assets.
The SBA offers Economic Injury Disaster Loans for small businesses, small agricultural cooperatives, small businesses engaged in aquaculture, and most private nonprofit organizations 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.
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 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 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.
In the coming days, the SBA will open a Disaster Loan Outreach Center in the counties of Fairfax and Arlington to answer questions about the disaster loan program and to help individuals complete their applications. Residents or business owners located in the City or any of the other declared localities may visit either of the loan outreach centers below or apply online using the Electronic Loan Application on the SBA’s secure website at DisasterLoan.sba.gov.
The filing deadline to return applications for physical property damage is Oct. 7, 2019. The deadline to return economic injury applications is May 7, 2020.