Hundreds of homeowners in southeast Kentucky are going about the work of making repairs to their flood damaged residences. The U.S. Small Business Administration wants to make sure they know about federal loan opportunities.
Julie Garrett with the SBA’s Office of Disaster Assistance admitted taking out a loan can present some anxiety. “I hate being in debt and I understand that. So I know people really want to think about that, but this is a really good loan compared to putting money on your credit card at a really high interest rate. This is another option for you, if you don’t have a lot of options or don’t have a lot of savings,” said Garrett.
Garrett said the interest rate on these disaster-related loans can be as low as 1.25% on a 30-year-loan. She said, so far, 12 loans for more than 539 thousand dollars have been approved for Kentucky homeowners. She added the loans can cover damage to yards, driveways, septic tank systems, and decks.
Garrett said loans up to $200,000 can be secured and federal dollars typically arrive about three to five business days after the loan is approved. Residents in Breathitt, Estill, Floyd, Johnson, Lee, Magoffin, Martin, and Powell Counties are eligible for the loan program. Garrett said thus far there have been 82 applications with about half moving through the process. Applications can be made online at disasterloan.sba.gov.
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