Disaster declaration granted for Hamilton, surrounding counties

"This is welcome news for Tennesseans in these counties," Gov. Bredesen said Thursday in a news release. "The ability to access low-interest loans through SBA will help those impacted by the heavy rains and flooding in September to speed their recovery efforts."

The declaration covers Hamilton County and the adjacent counties of Bledsoe, Bradley, Marion, Meigs, Rhea and Sequatchie in Tennessee and Catoosa, Dade, Walker and Whitfield counties in Georgia. It means that homeowners, renters and business owners whose property sustained damage in the flooding may be eligible for the low-interest loans.

Catoosa County Commission Chairman Keith Greene said residents in his county already qualified for the loans, so the declaration wouldn't have much of an impact south of the border.

"We've already taken care of it from that standpoint," he said.

The Small Business Association's Disaster Field Operations Center in Atlanta plans to open up a Disaster Loan Outreach Center on Tuesday at East Ridge City Hall, administration spokeswoman Kathy Cook said. Personnel will issue loan applications, answer questions about the loan program and application process and help people complete their applications, she said.

"The loans cover underinsured and uninsured losses," Ms. Cook said, noting they may be used to help with things such as insurance deductibles.

According to the SBA, interest rates on loans can go as low as 2.75 percent for homeowners and renters and 4 percent for businesses. Loan amounts and terms are set by the Small Business Administration and are based on each applicant's financial condition.

The declaration is a consolation prize of sorts for East Ridge and Hamilton County officials who had sought a full-fledged presidential disaster declaration, which many Georgia counties received. But the amount of damage and costs to governments in Hamilton County and Tennessee did not meet federal standards for outright grant assistance.

East Ridge City Manager William Whitson said that, while the city is "grateful" for the federal assistance that residents and business owners may receive through low-interest loans, it is a "little bit short" compared to what a number of Northwest Georgia counties can expect to see.

"We were the tail end of the train," Mr. Whitson said. "We were the caboose, and we were just cut off."

He noted that damage to East Ridge's public infrastructure and public response costs were estimated at between $150,000 to $200,000.

To qualify for a presidential declaration, the financial impact of damage to government infrastructure statewide must exceed $7.4 million, a threshold established by the Federal Emergency Management Agency.

A preliminary damage survey found Hamilton County sustained more than $455,000 in damage to its homes and businesses.

Staff writer Andy Johns contributed to this story.

LOW-INTEREST ASSISTANCE

The Small Business Administration plans to set up a Disaster Loan Outreach Center at East Ridge City Hall, 1517 Tombras Ave. It will operate for one week. Homeowners, renters and business owners who had no insurance or were underinsured and had property damaged in the September floods may be eligible for help.

The center will be open Tuesday through Tuesday, Nov. 3, from 8 a.m. to 5 p.m. It will be closed on the weekend.

Individuals and businesses unable to visit the center in person may obtain information and loan applications by calling the SBA's Customer Service Center at 1-800-659-2955 (1-800-877-8339 for the hearing impaired), Monday through Saturday from 8 a.m. to 9 p.m. EDT.

TYPES OF LOANS

--Loans up to $200,000 are available to homeowners to repair or replace damaged or destroyed real estate. Homeowners and renters are eligible for loans up to $40,000 to repair or replace damaged or destroyed personal property.

--Businesses and nonprofit organizations of any size may borrow up to $2 million to repair or replace damaged or destroyed real estate, machinery and equipment, inventory and other business assets.

--Mitigation funds are available to disaster survivors up to 20 percent of the verified physical damage. These funds are designed to help borrowers pay for protective measures to minimize future damage.

--Economic Injury Disaster Loans help small businesses and most private nonprofit organizations meet working capital needs caused by a disaster. Assistance is available regardless of whether the business suffered any physical property damage.

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