Governor David A. Paterson today announced that the federal Small Business Administration (SBA) has issued a physical and economic injury disaster declaration for Cattaraugus County and the contiguous counties of Allegany, Chautauqua, Erie and Wyoming in New York State and McKean and Warren in Pennsylvania making homeowners, renters and businesses eligible for low-interest loans for damages suffered in the severe storms that spawned devastating tornadoes last month.
“This is especially welcomed news for businesses and homeowners and renters in Cattaraugus and neighboring counties who have been affected by last month’s devastating tornadoes and severe storms,” Governor Paterson said. “I thank Administrator Karen Mills and the Small Business Administration for the quick response to my request for low-interest loans to help homeowners and businesses whose properties were ravaged by these weather phenomena and speed the recovery.”
On July 24, severe storms struck Cattaraugus County and caused tornadoes that resulted in damage to homes and businesses. Governor Paterson asked the SBA and the New York State Office of Emergency Management to work with the impacted counties and conduct a detailed assessment of the damages incurred. The results of that assessment showed that 26 homes and one business surveyed suffered uninsured losses of 40 percent or more of their estimated pre-disaster fair market value.
Low-interest economic injury SBA loans provide working capital to assist eligible small businesses recover from losses caused by a disaster or emergency such as the July storms. Small businesses impacted may be eligible for an economic injury disaster loan of up to $2 million to meet necessary financial obligations – expenses the business would have paid if the disaster had not occurred.
Homeowners and renters in Cattaraugus and the declared contiguous counties affected by the storms may apply for low interest physical disaster loans to pay recovery costs not covered by insurance. Renters and homeowners alike may borrow up to $40,000 to repair or replace clothing, furniture, cars or appliances damaged or destroyed in the disaster. Homeowners may also apply for up to $200,000 to repair or replace their primary residence to its pre-disaster condition.
Businesses of all sizes may apply for a physical disaster loan of up to $2 million to repair or replace damaged real estate, equipment, inventory and fixtures. The loan may be increased by as much as 20 percent to protect the property against future disasters of the same type. These loans will cover uninsured or under-insured losses.
The application deadline for physical disaster loans is October 15, 2010; the deadline for filing applications for economic injury loans is May 16, 2011.