Federal Loans Offered to Conn. Flood Victims

December 27, 2005

Feds offer low-interest loans for flood damage in Conn.
Received by Newsfinder from AP
Dec 23, 2005 20:21 Eastern Time
Federal low-interest loans are available to Connecticut businesses, nonprofit groups and residents coping with damage caused by flooding in October.

Losses are estimated at $42 million, with $29.6 million accounting for damage to homes.

The loans will be issued by the U.S. Small Business Administration in response to a request from Gov. M. Jodi Rell.

The flooding, which resulted from more than a week of steady rainfall, damaged 3,380 homes, according to an estimate by the Federal Emergency Management Agency.

Property owners may apply for a loan immediately. The deadline is Feb. 21.

Interest rates can be as low as 2.68 percent for homeowners and renters and 4 percent for businesses. Terms of a loan will depend on an applicant’s finances and the amount of uninsured losses.

Loans of as much as $200,000 are available to repair damaged homes and $40,000 to replace furniture, motor vehicles and other personal property damaged by flooding.

Businesses and nonprofit agencies can receive loans of as much as $1.5 million.

FEMA also will provide assistance, helping to pay for repairs to public works such as roads and bridges.

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