Solobay: Disaster Declaration Could Help Local Businesses

Gov. Tom Corbett’s request that the U.S. Small Business Administration declare three counties disaster areas because of flooding from storms could have benefits across southwestern Pennsylvania, state Sen. Tim Solobay said Tuesday.

“The storms in the last week of June were a terrible setback for many homeowners and businesses already struggling to recover from recession,” Solobay, D-Canonsburg, said. “Help from the federal government could put a lot of people back to work.”

Corbett requested the disaster designation for Jefferson, Clearfield, and Fayette counties because the flooding. 

Residents of those three counties, along with the 14 counties that border them, may be eligible for low-interest disaster loans through the SBA Disaster Loan Programs.

The bordering counties include Greene, Washington and Westmoreland.

SBA officials, along with local and state officials, have conducted damage assessments in the counties and state emergency management officials say the damage exceeds the SBA criteria of at least 25 homes and/or businesses with uninsured losses of 40 percent or more of their estimated fair market value.

A disaster declaration means the SBA would provide low-interest loans of up to $200,000 to eligible homeowners to repair or replace damaged or destroyed real estate.

SBA regulations permit loans up to $40,000 for homeowners and renters to repair or replace personal property. Businesses can borrow up to $2 million. Loan amounts and terms are set by the SBA and are based on each applicant's financial qualifications.

More information on disaster assistance in Pennsylvania is available at www.pema.state.pa.us by clicking on “Disaster Assistance” in the left-hand column.