Special assistance centers are opening in Western Washington for businesses and residents affected by the destructive December floods. The federal agency — the U.S. Small Business Administration (SBA) — is operating these centers in five counties: King, Lewis, Skagit, Snohomish and Whatcom. These counties, located between the Puget Sound coastline and the Cascade Mountains, are particularly vulnerable to flooding because of numerous rivers flowing down from the mountains, frequent "atmospheric rivers" from the Pacific, low-lying valleys, and the combination of heavy rains with mountain snowmelt. The primary purpose of the centers is to help with completing applications and to answer questions about obtaining low-interest recovery loans.
There are two main types of loans: for compensation of physical damage to property and to cover economic losses caused by the disaster. The deadline to apply for the first type is April 27, and for the second is November 24, 2020. This gives those affected sufficient time to assess the full scale of the financial impact.
The assistance centers will operate in libraries, municipal buildings and other public locations in the listed counties. Their exact addresses and detailed schedules can be found on the SBA’s official website. Applications can also be submitted entirely online through the portal sba.gov/disaster, which is especially convenient for those who cannot visit a center in person.
Loan terms are favorable. Small businesses and non-profit organizations may be eligible for up to $2 million to repair real estate, equipment or inventory. Homeowners can receive up to $500,000 to repair primary residences and an additional up to $100,000 for personal property. For renters, the maximum loan amount to replace belongings is also $100,000.
A key benefit of the program is the ability to increase the loan amount by 20% of the physical damage amount to fund measures that prevent future disasters. In Western Washington, such measures, adapted to local terrain and infrastructure, typically include strengthening levees and floodwalls, improving drainage systems, restoring natural floodplains, upgrading bridges and roads, river channel diversion projects, and implementing early warning systems. Interest rates are very low: from 4% for businesses to 2.875% for individuals, and repayment terms can be up to 30 years. In addition, loan payments do not begin until 12 months after the initial disbursement.
The scale of damage from the December flooding is significant. Washington Governor Bob Ferguson, as the state’s chief executive, is coordinating relief by declaring a state of emergency and requesting federal support. He has formally requested about $173 million from the federal government to repair roads, levees and to prepare for similar events in the future. In addition to the SBA, response and recovery typically involve FEMA, the state disaster relief fund, the Department of Transportation, the National Guard, local authorities, the Red Cross and volunteer organizations. A preliminary estimate of total statewide damage is $182.3 million, and officials are still awaiting a decision on additional federal aid.
For more information about the SBA assistance program, contact the service center at 800-659-2955 or by email at disastercustomerservice@sba.gov. For people with hearing or speech disabilities, the telecommunications relay service is available at 711.
Based on: SBA opens centers for December flood recovery loan applications