By Anne Hershewe

news@joplinglobe.com

Three types of loans are available to assist local businesses and area homeowners who experienced property damage in the May 8 windstorm.

Home Disaster Loans are for homeowners or renters who sustained personal property or real-estate damage, said Burl Kelton, communications specialist for the U.S. Small Business Association.

On Thursday, he outlined the types of assistance available from the federal agency.

Business physical disaster loans allocate funds for businesses and not-for-profit organizations to replace and repair property, he said.

And Economic Injury Disaster Loans (EIDLs) are available for businesses that cannot financially support themselves because of a disaster.

Last month, President Obama issued a disaster declaration for 28 counties in Missouri, including Jasper and Newton counties, for damages to personal and business property from storms and flooding occurring from May 8 to 16. The declaration enables people in these counties to apply for federal funding in the form of grants and loans.

While FEMA is able to provide immediate emergency aid to communities through grants, the SBA can award loans to residents to help repair and replace damaged property.

“We’re there for the long-term assistance of the victims,” said Kelton

Kelton also said SBA loans are optional and, after they are approved, applicants have up to six months to decide whether to take the funding. He said sometimes circumstances arise where disaster victims cannot take care of damages financially a few months following the application deadline. Kelton said this time period gives people a bit of a cushion to make a final decision.

He also said the SBA tries to evaluate applications within a few days of receiving them and it tries to get back to applicants within two weeks with a loan offering.

Businesses can receive a loan up to $2 million, while homeowners can receive as much as $200,000, Kelton said. Interest rates for businesses and Economic Injury Disaster Loans are between 4 and 6 percent, and rates range from 2.5 to 5 percent for home loans. The terms are for 30 years.

Kelton said that the process ends up being “self-perpetuating” because people who have been helped by SBA loans in the past pay back their loans, which creates funds to loan to other disaster victims.

The application deadline for home and business disaster loans is Aug. 18. The deadline for an economic injury loan is March 2010.