By Sen. Olympia J. Snowe(R-Maine)
As northern Maine diligently works to recover from last month’s devastating flood, long-term federal assistance programs will be beneficial in leading this region’s revitalization. As Ranking Member of the Senate Committee on Small Business and Entrepreneurship, which oversees the Small Business Administration (SBA), I want to assure all Mainers that I am committed to ensuring that Agency, as well as the Federal Emergency Management Agency (FEMA), does everything within its power to help bring businesses and homeowners affected by this disaster back to normalcy. While the SBA and FEMA are already actively engaged in assisting Mainers, many victims still have questions about the kinds of assistance they are eligible to receive. Others are having difficulties navigating what can be a cumbersome and complicated application process. To help Mainers receive the assistance to which they are entitled, I have compiled the following list of frequently asked questions and answers. It is my goal that those struggling to rebuild their homes and businesses are offered relief in a simple and expeditious manner.
Who is eligible for assistance and what is the application deadline?
Certain individuals, households, and small businesses that were affected by the April flooding and are located in Aroostook or Penobscot Counties may be eligible for federal disaster assistance. For small businesses in Aroostook, Penobscot, Hancock, Piscataquis, Somerset, Waldo, and Washington counties, the SBA offers Economic Injury Disaster Loans (EIDL) to help meet working capital needs caused by the disaster, regardless of physical property damage.
The deadline for disaster loan applications for homeowners and businesses in Aroostook and Penobscot counties is July 8, 2008. The EIDL deadline, for small businesses in Aroostook, Penobscot, Hancock, Piscataquis, Somerset, Waldo, and Washington Counties, is February 9, 2009.
What type of assistance does the federal government provide?
The federal government provides funding and assistance to individuals and businesses after disasters, primarily through FEMA and the SBA. FEMA’s Individuals and Households Program provides grant money and direct services to those affected by a major disaster. For instance, FEMA can provide temporary housing, as well as money to repair damage from the disaster that is not covered by insurance, limited funds to help homeowners replace their destroyed homes, and assistance with various types of necessary expenses. For its part, the SBA offers low-interest loans to repair damage to property owned by homeowners, renters, businesses, and private non-profit organizations that are not fully covered by insurance – that’s right, SBA disaster loans are not just for businesses. The primary difference between the assistance programs FEMA and SBA provide is that SBA loans must be repaid. In contrast, FEMA grants need not be paid back. A victim’s circumstances will determine the types of resources for which they will qualify.
As a homeowner, why did I receive a disaster loan application from SBA after applying with FEMA?
The SBA is the primary source of federal funds for long-term recovery assistance for disaster victims. For damage to private property owned by homeowners, renters, and non-farm businesses of all sizes, which is not fully covered by insurance, the basic form of federal help is the SBA’s low-interest disaster loans. To begin the assistance process, many disaster victims requesting FEMA aid are given an SBA application. After completing the SBA loan application, which every person receiving it must do, the SBA may determine that an individual is not eligible for a loan. If this is the case, the SBA will automatically refer a victim to FEMA for additional help. A disaster victim who has been provided with an SBA loan application cannot receive FEMA assistance unless a completed loan application is returned to the SBA, and that application has been rejected.
How do I apply for federal disaster assistance and who can I contact if I have additional questions?
Disaster victims can apply online by visiting www.fema.gov and clicking on the “Online Individual Assistance Center” or by phone by calling 1-800-621-FEMA (hearing/speech impaired may call 1-800-462-7585). If an individual has questions after applying for assistance or if the information provided has changed, a victim should call the FEMA Helpline at 1-800-621-FEMA. For questions regarding SBA disaster loans, the Agency can be reached at 1-800-659-2955.
Also, if an individual would like personalized assistance, a Disaster Recovery Center is open in Fort Kent at the town office building Monday through Saturday from 8 a.m. to 6 p.m. A victim can meet with FEMA or SBA representatives and obtain information about all aspects of recovery. There is also a mobile unit that travels to various communities to reach individuals in other areas. The mobile unit was in Masardis May 30 and 31 and in Washburn on June 2 and 3; and will be in Portage Lake on June 4 and 5, and Eagle Lake on June 6 and 7.?
