SBA to make disaster loans available

Beginning Friday, Saipan’s businesses and individuals who suffered losses due to Typhoon Tingting may file their applications for up to $1.5 million in disaster loans, when the U.S. Small Business Administration puts up a disaster center at the Multipurpose Center in Susupe.

This comes even as the CNMI still awaits President Bush’s major disaster declaration for the Northern Marianas, 30 days after Tingting made its closest approach to Saipan.

Gov. Juan N. Babauta had submitted the disaster declaration request way ahead of the 30-day deadline. Vicky Villagomez, the Governor’s Authorized Representative, said, though, that the decision as to when to declare the CNMI a major disaster is at the discretion of the president.

The SBA is making available low-interest disaster loans to small businesses and individuals affected by the typhoon after declaring Saipan a disaster area. The SBA partially granted Babauta’s request to extend assistance to the CNMI to help affected businesses and individuals recover from their losses.

The governor said Saipan farmers whose crops were destroyed could avail of SBA loans. Homeowners, renters, non-profit private organizations, and businesses of all sizes may also avail of disaster loans.

SBA disaster area director Alfred E. Judd said the disaster center in Susupe would be opened Friday beginning at 8am. The center will be open Tuesdays through Fridays from 8am to 12noon and 1pm to 5:30pm, and on Saturdays from 9am to 1pm.

“SBA’s loan officer will answer specific questions about how a disaster loan from SBA may help each victim recover from the disaster, and provide one-on-one assistance in completing their loan application,” Judd said.

Up to $200,000 in disaster loan may be made available to homeowners to repair or replace damaged or destroyed real property, according to the SBA.

It said that homeowners and renters could be eligible for up to $40,000 in disaster loans to repair or replace damaged or destroyed personal property.

“Businesses of any size and private non-profit organizations may borrow up to $1.5 million to repair or replace damaged or destroyed real estate, machinery and equipment, inventory, and other business assets. Additionally, economic injury disaster loans of up to $1.5 million are available to small businesses,” Judd said.

For physical damage loans, interest rate can be as low as 2.75 percent for businesses and non-profit organizations without credit available elsewhere. Interest on economic injury loans for businesses and small agricultural cooperatives without other credit lines is also 2.75 percent.

In his request to the SBA, Babauta cited the American Red Cross-CNMI chapter’s preliminary damage assessment that reported at least four destroyed houses on Saipan and 81 others sustaining major damage. The assessment also reported that at least 101 houses on the island sustained minor damage.

Babauta also reported that many small businesses suffered damage and lost revenues when they had to shut down operations at the height of the typhoon. Tingting’s record-breaking rainfall also caused flooding in many areas, forcing many small businesses to remain closed until weather conditions improved, according to the governor.

The governor also reported at least four houses destroyed and 24 others sustaining major damage on Tinian, as well as the destruction of all houses in Agrihan and Pagan islands. The SBA’s disaster declaration, however, covered Saipan only.

The SBA said application for physical damage loans could be filed until Sept. 20, 2004, while those for economic injury could be filed until April 20, 2005.

Those who are unable to visit the Susupe disaster center may obtain information and loan applications by writing to SBA at P.O. Box 419004, Sacramento, CA 95841-9004, or by calling toll-free at (800)488-5323. Hearing impaired individuals may call (916)735-1683.