The federal government is offering hundreds of thousands of dollars in low-interest disaster loans to help Washington state residents recovering from major flooding last year. The U.S. Small Business Administration, or SBA, has dispatched staff across the region to assist people apply for financial aid at temporary outreach centers.
Severe flooding in December caused widespread damage in Western Washington, including an estimated $182 million in damage to state infrastructure. Gov. Bob Ferguson sent a request to the Trump administration last month to release additional disaster relief for repairs.
The SBA is offering loans directly to homeowners, renters and businesses affected by the floods. This financial aid is meant to help uninsured and underinsured Washingtonians address flood damage.
According to Mary Anne Bradfield, a spokesperson with the SBA, the disaster loans are flexible and can cover a wide array of expenses, like “furniture, clothes, your automobile.”
“Little things that you don’t think about, that you need,” she said.
The SBA is the largest source of federal disaster funding for rebuilding and repairing homes, according to the Federal Emergency Management Agency. Both homeowners and renters can apply to borrow up to $100,000 to replace personal items. Loans to replace or repair your primary residence can go up to $500,000. These are 30-year, fixed-rate loans with interest rates of 4% or less.
Bradfield said these loans are meant to help give people the time and space to figure out their next steps without having to rely on credit cards or other loans with high interest rates. The SBA also gives households an extended period of time before they have to make payments or are charged interest.
“Twelve months without interest or payments required to give everybody a chance to get back on their feet,” Bradfield said.
Qualifying businesses and nonprofits can receive up to $2 million in disaster loans to address physical damage. Financial aid is available to help address economic impacts from the flooding.
Most agricultural producers, like farms and ranches, do not qualify for SBA disaster loans. However, Bradfield explained that if they have a side business, such as an event space or a farm stand, they may be able to apply for a disaster loan.
“We can't help the agricultural producers with disaster loans, but we can if they have a separate business that they keep separate records for — financial records,” she said. “Even if it's on the farm or ranch, we can potentially help them either with the physical damages or economic injury.”
The SBA has opened outreach centers across Western Washington where customer service representatives can answer questions or help people apply for a loan. Appointments are available, and walk-ins are welcome. Offices have been opened in Chelan, King, Lewis, Skagit, Snohomish and Whatcom counties.
Applications for disaster loans to address property damage are April 27. Businesses and nonprofits have until Nov. 24 to apply for loans to address economic impacts from the flooding.
