Placer County Will Receive Disaster Assistance From the Small Business Administration

Washington, DC – The Small Business Administration (SBA) announced last night that residents in Placer County will be eligible for low-interest disaster loans to help them rebuild after the devastating 49er fire. Senators Barbara Boxer and Dianne Feinstein (both D-CA) sent a letter to the agency yesterday specifically requesting the assistance.

Low-interest disaster loans from the SBA are available to homeowners, renters, businesses of all sizes and private, non-profit organizations to help repair or replace residential and business losses.

Homeowners may borrow up to $200,000 to repair or replace their primary residence, and homeowners and renters may borrow up to $40,000 to replace personal property. Businesses of any size and private, non-profit organizations may borrow up to $2 million to repair or replace disaster damaged or destroyed real estate, machinery and equipment, inventory and other assets.

Interest rates can be as low as 2.75 percent for homeowners and renters and 4 percent for businesses with terms up to 30 years. SBA determines loan amounts and terms based on each applicant’s financial condition.

SBA’s disaster declaration covers Placer County and the neighboring counties of El Dorado, Nevada, Sacramento, Sutter and Yuba in California as well as Carson City, Douglas and Washoe in Nevada.

A copy of the letter from Senators Boxer and Feinstein to the SBA follows:

September 9, 2009

The Honorable Karen Mills
Administrator, U.S. Small Business Administration
409 3rd Street, S.W. Suite 7000
Washington, DC 20024-3212

Dear Administrator Mills:

We write in support of Governor Arnold Schwarzenegger’s request for a Small Business Administration Disaster Declaration for Placer County. As you know, the recent 49er fire destroyed numerous homes and commercial properties in the community of Auburn and burned over 340 acres.

Damage surveys conducted by the California Emergency Management Agency and the U.S. Small Business Administration (SBA) on September 2, 2009, determined that 68 homes and six businesses have uninsured losses of at least 40 percent of their value, thus meeting the SBA minimum criteria for a disaster declaration.

Due to the devastation caused as a result of these fires, we join Governor Schwarzenegger in requesting that you declare Placer County a disaster area. Assistance in the form of disaster loans will be immensely helpful to the residents and their businesses in this time of great need.

We appreciate the support that the SBA has provided to California in times such as these and thank you in advance for your consideration.

Sincerely,

Barbara Boxer
United States Senator

Dianne Feinstein
United States Senator

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