The U.S. Small Business Administration has approved giving emergency low-interest loans to help repair storm damage in Northern Virginia — the only success in the governor’s attempt to secure federal aid for flood-ravaged homeowners.
The approval opens up loans of up to $200,000 for home repairs and $40,000 for property replacement with a interest rate that varies between about 3 percent and 6 percent, according to Bob Spieldenner, spokesman for the Virginia Department of Emergency Management.
The loans are available to homeowners, renters and businesses in the cities of Alexandria, Fairfax and Falls Church and the counties of Fairfax, Arlington, Prince William and Loudoun.
There is no guarantee, however, that all residents who apply will be approved. Spieldenner said credit history will impact the decision on each application.
“If they have credit problems, that’s something that could keep them from getting the assistance,” he said. “They still look at people’s credit worthiness, whether they have a good track record.”
The announcement is only part of what the governor and local residents had hoped for.. Gov. Timothy Kaine’s original appeal for both grants and loans, known as “individual aid,” was rejected twice by FEMA. The disaster agency said it based the denial on the ability of local governments to handle the storm recovery.
“It’s not optimal,” said Kaine spokesman Kevin Hall of the SBA loans. “Individual aid [from FEMA] tends to be more useful, especially for the working folks who may not be interested in assuming debt for repairs.”
The disaster heaped millions in public and private property damage onto Northern Virginia, much of it localized in Alexandria and Fairfax County’s Huntington community.
In Huntington, nearby Cameron Run swelled in late June and washed through neighborhoods, originally swamping about 150 homes with sewage infested water. The community — widely considered the worst hit during the storm — suffered $3.3 million in private damages.
