Shrewsbury Low-Interest Federal Loans Available To Flood Victims

by Brandi Schubert

Individuals and businesses impacted by the severe flooding in the St. Louis area from July 25 to July 28 now have additional resources available to help recover.

U.S. President Joe Biden’s disaster declaration on Aug. 8 makes the Federal Emergency Management Agency’s Individuals and Households Program available to residents and businesses in the city of St. Louis, and St. Louis and St. Charles counties.

Working with FEMA, the U.S. Small Business Administration’s Office of Disaster Assistance administers the program. During a Shrewsbury Board of Aldermen meeting Tuesday, SBA Public Information Officer Corey Williams encouraged business owners, home owners, renters and nonprofits to inquire about their options for lowinterest loans to help assist their flood recovery efforts.

The first step in the disaster recovery process, Williams said, is to register with FEMA. There are now four ways to register — visit FEMA’s website at disasterassistance.gov, call the tollfree number 1-800-621-(FEMA)3362, download the FEMA mobile app on Android or IOS devices, or visit one of the disaster recovery centers recently opened in the area, including the Hazelwood Civic Center on Dunn Road and Ranken Technical College on the corner of Newstead and Page — both open 8 a.m. to 7 p.m., seven days a week.

“Once someone registers with FEMA, they may receive a referral to the SBA,” Williams said. “A homeowner or renter in Shrewsbury may ask, ‘Why SBA? I don’t own a business.’ Well, in times of disaster, we are able to offer home loans. No closing costs, no costs to apply and no prepayment penalties.”

Homeowners may qualify to borrow up to $200,000 to repair or replace disaster-damaged real estate, and up to $40,000 to repair or replace disasterdamaged personal property. Interest rates on those loans start at 1.688%. Renters can also borrow up to $40,000 to repair or replace damaged property.

Businesses and nonprofits can borrow up to $2 million with business loan interest rates starting at 2.93%. Nonprofits have a fixed interest rate on loans at 1.875%.

“I would encourage anyone with questions to visit one of our disaster recovery centers,” Williams said.

He also encourages flood victims not to wait too long to submit their application. The loan deadline for physical damage is Oct. 7. The deadline for economic injury, including impacts to revenue, employee layoffs and inability to make monthly lease payments, is March 8, 2023.