The Federal Emergency Management Agency and the U.S. Small Business Administration are encouraging Harpswell residents to apply for assistance with recovery from the January storms.
Those in search of aid need to apply soon. The deadline to apply for FEMA aid and most loans from the Small Business Administration is May 20. The exception is economic injury loans from the Small Business Administration, for which the deadline is Dec. 23.
The two agencies work side-by-side to respond to disasters. FEMA provides grants to cover the cost of home repairs, temporary housing, and “essential” property and transportation.
“Our goal is to bring a home back to a safe, sanitary and habitable condition,” said Shirley “Jann” Tracey, a spokesperson for FEMA.
The Small Business Administration makes loans to homeowners and renters that do not qualify for FEMA assistance, as well as to businesses and nonprofits.
“Anything not covered by insurance or FEMA may be eligible for an SBA loan,” said Brian Beard, a spokesperson for the Small Business Administration.
The storms on Jan. 10 and 13 combined with astronomical high tides to devastate the Maine coast. President Joe Biden declared the storms a major disaster in March, clearing the way for federal assistance. The disaster covers Maine’s eight coastal counties, including Cumberland.
Soon after Biden’s declaration, officials from FEMA and the Small Business Administration arrived in Harpswell.
FEMA employees are knocking on every door where the county has a report of damage, according to Tracey.
Beard, who is responsible for the Small Business Administration’s outreach in Cumberland and York counties, has become a familiar sight at the Harpswell Town Office, meeting with officials and addressing the Select Board.
For both FEMA and the Small Business Administration, applicants should file insurance claims first, but they can apply for federal aid before insurance is settled.
“It’s a very fast process under normal circumstances,” Tracey said about obtaining FEMA aid. FEMA will usually conduct an inspection, then it will send funds by check or direct deposit. After flooding further inland in December 2023, applicants had cash within a week, she said.
FEMA has no income limits. The maximum payout is $42,500, which is rare, Tracey said.
Tracey said Mainers have a reputation as self-reliant — eager to help their neighbors yet reluctant to accept help themselves. But she urges everyone who qualifies to apply.
“FEMA’s not going to run out of money,” she said. “Take advantage of it.”
The Small Business Administration offers low-interest, long-term loans to cover damage not covered by another source, according to agency documents. There is no cost to apply, and no interest or payments for the first year.
Homeowners can borrow up to $500,000 for home damage; homeowners and renters can borrow up to $100,000 to repair or replace personal property, including vehicles; and businesses can borrow up to $2 million for a combination of physical and economic damage.
Interest rates after the first year depend on whether the applicant has the ability to borrow from private sources. If they do, the government charges a higher rate.
The rate for home loans is 2.688% or 5.375%. For business loans, it is 4% or 8%. For nonprofits, it is 3.25%. Loan terms can be up to 30 years for those without the ability to borrow elsewhere, while others must repay the loans in seven years.
For both FEMA and Small Business Administration aid, applicants can receive help even after completing repairs, as long as they have documentation. For example, if someone pays for repairs with a credit card, they may qualify for a low-interest loan from the Small Business Administration to replace their higher-interest debt.
From the Small Business Administration, homeowners and businesses can request an additional 20% of their damage amount for mitigation — to prevent damage from future floods. For example, a homeowner could use the funds to raise a structure or build a retaining wall.
The Small Business Administration also offers economic injury disaster loans to assist businesses or nonprofits that lost income because of the storms.
Beard encourages anyone who thinks they might need a loan to apply. If they get an offer, they have two months to decide whether to accept, and they can decline at no cost.
Homeowners and renters with damage should register with FEMA first, according to Beard. If FEMA refers them to the Small Business Administration, he said, they should apply for a loan even if they do not want one. If the Small Business Administration denies their loan application, it may refer them back to FEMA for further review and possible assistance.
The Small Business Administration only provides home loans for primary residences, where the homeowner lives more than half the year. An exception is rental properties, for which the owner may qualify for a business disaster loan.
Commercial fishermen may qualify for business loans to cover infrastructure such as docks, as well as boats, according to Beard. Recreational boats and docks generally do not qualify, unless they are the only means to access a primary residence on an island.
To apply for assistance from FEMA, call 800-621-3362, go to disasterassistance.gov, or download the FEMA mobile app.
To apply for a loan from the Small Business Administration, go to lending.sba.gov, call 800-659-2955, email disastercustomerservice@sba.gov, or visit a recovery center.
Applicants also may seek aid in person at either a disaster recovery center, where they can find both FEMA and Small Business Administration staff; or a business recovery center, with Small Business Administration staff only. As of Friday, April 5, FEMA and the Small Business Administration were still working to set up recovery centers in Cumberland County.
