More than $1 million already given out to Granite City ‘freak’ flash flood victims

Nov. 5--GRANITE CITY -- After months of searching for financial relief, some Granite City residents are getting the money needed to repair damage to their homes because of a "freak" event.

Officials in Granite City say more than $1 million has been distributed in low-interest, long term U.S. Small Business Administration loans to help citizens affected by flash flooding in August.

Homes and businesses throughout the Granite City area were damaged when 9 inches of rain fell over the city over three hours, overrunning the city's sewage systems and filling homes, businesses and streets with backed up water.

Tamim Choudhury, a public affairs specialist with the SBA, said so far there have been 85 home loan applications and five business loan applications. Of those applications, 32 loans have been approved worth about $1.17 million.

He expects more will apply before Wednesday, when SBA officials will leave Granite City and no longer offer consultations to those who are seeking loans. However, residents and businesses will still be able to apply for loans until Dec. 9.

"People are still trickling in," he said. "I think more people are finding out about it. I just want people to know about it so they don't miss out."

The SBA already had its stay extended once, after an initial surge of applications from Granite City and others in Madison County.

Homeowners, renters, business owners and nonprofit organizations are eligible for SBA disaster loans, and funds from those loans can go toward homeowners and renters' repair costs and replacing damaged or destroyed personal property.

Residents in unincorporated Madison County, Pontoon Beach or Madison who were affected by the flooding may also be eligible for these loans.

Homeowners are eligible for up to $200,000 to repair or replace damaged or destroyed real estate and loans up to $40,000 to repair or replace damaged or destroyed personal property.

Businesses and nonprofits can borrow up to $2 million toward repairing or replacing real estate, machinery and equipment, inventory and other business assets damaged or destroyed by the flash flooding.

Interest rates on the loans can be as low as 4 percent for businesses, 2.75 percent for nonprofits and 1.75 percent for homeowners and renters. Those loans can be paid off over a maximum of 30 years. Rates and loan terms are based on each applicant's financial situation.

According to the SBA, the loans have been made available in response to a letter from Gov. J.B. Pritzker requesting a disaster declaration from the agency.

For some, the loans were the last of several exhausted options, as Granite City had been denied funding from both the federal and Illinois Emergency Management Agencies due to lack of widespread severity, and all insurance claims were denied by the city's insurance provider, Thomas McGee.

Last month, Granite City Director of Economic Development Cathy Hamilton said the city was looking to appeal that decision on behalf of its citizens. She noted that the loans were a boon for the city and an opportunity many other cities affected by springtime flooding along the Mississippi River haven't received.

"We are one of the only communities who have received a (disaster) declaration," Hamilton said, noting that some cities affected by springtime flooding from the Mississippi haven't received a declaration.

Choudhury said the program is a chance for residents to get back on their feet. But, he added, it may not be for everyone.

"It's a really good program," Choudhury said. "But if it's not good for them (residents) and they do the math and decide its not for them, that's fine."

Businesses and individuals may obtain information and loan applications by calling SBA's Customer Service Center at 1-800-659-2955 or by emailing [email protected]. Loan applications can also be downloaded at www.sba.gov.

BEHIND OUR REPORTING

Here's why we did this story

A "freak" storm dumped 9 inches of rain on Granite City on Aug. 12, flooding homes and businesses. The BND is bringing this information to residents in an effort to keep them informed about the damage to their city and what is being done about it.

___

(c)2019 the Belleville News-Democrat (Belleville, Ill.)

Visit the Belleville News-Democrat (Belleville, Ill.) at www.bnd.com

Distributed by Tribune Content Agency, LLC.