SBA loans now available for Tingting victims

Saipan’s small businesses and individuals who suffered losses due to the onslaught of Typhoon Tingting may now avail of low-interest disaster loans from the U.S. Small Business Administration.

Gov. Juan N. Babauta said yesterday that the SBA partially granted his request to extend assistance to the CNMI to help affected businesses and individuals recover from their losses. He said SBA representatives would arrive on Saipan next week to entertain loan applications.

“Farmers with damaged crops can borrow money,” Babauta said. The governor had asked President Bush to declare a major disaster in the Commonwealth, but the joint preliminary damage assessment conducted by the CNMI and the Federal Emergency Management Agency determined that the islands qualify only for public assistance.

With SBA’s decision on Babauta’s request, individuals whose homes were damaged or destroyed by the typhoon may apply for disaster loans.

However, while Babauta also mentioned in his request the damage sustained in the Northern Islands, the SBA’s decision was limited to Saipan only, according to Vicky Villagomez, the Governor’s Authorized Representative.

Hector V. Barreto, administrator at the SBA’s Disaster Area 4 Office headquartered in California, notified the CNMI of the availability of disaster loans on Saipan, noting the structural damage caused by the typhoon throughout the island.

Barreto said application for loans for physical damage resulting from the disaster could be filed until Sept. 20, 2004, while those for economic injury could be filed until April 20, 2005.

Businesses and individuals may file their application with the SBA representative who will arrive next week, or at this address: U.S. Small Business Administration, Disaster Area 4 Office, P.O. Box 419004, Sacramento, CA 95841-9004.

For physical damage loans, the 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.

Saipan Chamber of Commerce’s Richard Pierce thanked the governor for initiating the SBA request. He assured that the Chamber would disseminate the information on the availability of SBA loans through the Chamber’s small business committee.

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

“Many small businesses suffered damage and lost revenues when they had to shut down operations and remain closed at the height of the typhoon due to dangerous weather conditions. The monsoon rains subsequently caused flooding in many areas after the typhoon that continued to force many small businesses to remain closed until weather conditions improved,” the governor said.

The governor also reported at least four houses destroyed and 24 others sustaining major damage on Tinian.

“Many of the destroyed and damaged homes on both islands had [their] roofs blown off, [with] windows and walls damaged, [besides] water damage to personal properties from the monsoon rains that continued for three days, causing flooding in homes and low-lying areas,” Babauta added.

He also said all houses in Agrihan and Pagan islands were destroyed.

As of yesterday, the CNMI was still awaiting presidential declaration of the Northern Marianas as a major disaster area.

A joint preliminary damage assessment conducted by the CNMI and the Federal Emergency Management Agency on Saipan and Tinian estimated damage at over $2.53 million.

Of this estimate, some $650,000 would be needed to restore utilities; $350,000, roads and bridges; $250,000, buildings and equipment; $210,000, parks and recreational facilities; $150,000, water control facilities; and $77,000, debris clearance. Some $82,000 would cover overtime pay of government personnel who helped in the response and recovery efforts after the typhoon.

Estimated damage on Rota’s roads and bridges that needed debris clearing was over $761,800. The governor also reported of over $1 million damage to the island’s only commercial port and over $500,000 damage to crops.

The disaster declaration is needed so that the islands could avail of federal assistance pursuant to Public Law 93-288, also known as the Robert T. Stafford Disaster Relief and Emergency Assistance Act.