Disaster declaration by federal administration makes loans possible for December flood victims

The city of Redding is partnering with the U.S. Small Business Administration (SBA) to host a Disaster Loan Outreach Center to support those impacted by last December’s flooding.

The event is meant to assist local residents, businesses and nonprofits who are recovering from the flooding, and it will be open for several weeks starting Feb. 6. 

The outreach center, which will be hosted throughout various parts of Redding City Hall, will provide in-person assistance to those seeking low-interest federal disaster loans, according to a press release sent by the city earlier this afternoon. The release explains that the SBA issued a disaster declaration this past Monday to recognize the significant impacts caused by the storm across multiple counties in the North State, including Shasta. 

“While the City of Redding is not funding disaster assistance directly,” said Interim City Manager Kari Kibler in the release, “we are pleased to host the U.S. Small Business Administration and support their efforts to connect our community members with the financial resources they need during recovery.”

SBA representatives will be available at the city hall to explain disaster loan programs, assist applicants with completing loan applications and answer questions. Individuals can schedule an appointment in advance, though walk-ins are also welcome.

According to the city, the disaster loan program will offer low-interest loans to businesses and private nonprofit organizations to repair or replace disaster-damaged property and equipment. Loans will also be available to homeowners and renters to repair or replace real and personal property. And small businesses and nonprofits that experienced economic losses following the disaster, even if they didn’t receive physical damage, are also eligible. 

Chris Stallings, Associate Administrator of the Office of Disaster Recovery and Resilience at the SBA said when disasters strike, SBA’s Disaster Loan Outreach Centers play a vital role in helping small businesses and their communities recover. “At these centers, SBA specialists assist business owners and residents with disaster loan applications and provide information on the full range of recovery programs available,” Stallings added. 

Interest rates for disaster loans through SBA start at 4% for businesses, 3.625% for nonprofits and 2.875% for homeowners and renters, the city’s press release indicated, and repayment terms are up to 30 years. Loan payments will be deferred for 12 months after the first disbursement, the city said. 

Those wishing to apply online can do so at www.sba.gov/disaster, call the SBA Customer Service Center at 800-659-2955 or email disastercustomerservice@sba.gov. Individuals who are deaf, hard of hearing or have a speech disability can dial 7-1-1 to access telecommunications relay services. 

The event starts tomorrow at 12 p.m. at 777 Cypress Avenue in Redding. Starting next week, the outreach center will be open Mondays through Fridays from 8 a.m. to 5 p.m. —  with the exception of Feb. 16, in observance of Presidents’ Day. The city did not provide an exact end date for when the weeks-long event would end. 

The deadline to apply for a loan for physical damage is April 6. The deadline to apply for a loan to help cover the economic impacts of the diaster is Nov. 3. 

While the event will occur at Redding City Hall, the exact location within the building will vary depending on room availability. A schedule for where to find the SBA team, shared by the city, is below.

The city also provided a map of the rooms where the center will be held: 

---

Do you have a correction to share? Email us: editor@shastascout.org.