Letter: Issues involving aid for flooding addressedSome good news for flood victims in Nobles County, as it has been added to the federal flooding disaster declaration.
By: Dist. 22A Rep. Doug Magnus, R-Slayton, Worthington Daily Globe
Some good news for flood victims in Nobles County, as it has been added to the federal flooding disaster declaration. This addition means it is eligible for public assistance from FEMA as well as the state infrastructure assistance from the bill that was approved during our recent special session.
I’ve taken a few phone calls over the past few days regarding the federal government not approving individual home damage, so I thought I’d try to address it.
Though FEMA has rejected individual home damage, the U.S. Small Business Association (SBA) did issue a disaster declaration for our counties, which will allow businesses and homeowners in the flooded area to apply for low interest SBA loans.
Also worth noting: The disaster relief bill approved by the Minnesota legislature will provide flood relief aid for both homeowners and business owners, above the low interest SBA loans offered by the federal government, which includes the Minnesota “Quick Start” program.
A colleague of mine whose district had major flooding three years ago shared some details about how the program worked back then, and how he expects it will likely work in the coming months.
Under this program, homeowners are required to file any flood insurance claims they may have, and then apply for an SBA loan. Any gap between the amount of the total damage costs and the amount homeowners are eligible for from insurance plus the SBA loan is considered the ‘gap.’
The Quick Start program provides 10-year forgivable loans in amounts of $1,000 to $30,000 for these eligible homeowners. Borrowers are required by the government to accept the maximum loan that SBA offers them before they are deemed eligible for Quick Start.
Business owners will be eligible for Minnesota Investment Fund program loans with or without interest or as forgivable loans. This program will be defined more locally, but is required to meet the requirements set out in statute at https://www.revisor.mn.gov/statutes/?id12A.07.
Details will be likely be available in the coming days.