Small, nonfarm businesses hit by high winds and floods in the counties of Hawaii, Honolulu and Maui can apply for low-interest disaster loans — but not those on Kaua‘i. The U.S. Small Business Administration said it plans to offer loans
Small, nonfarm businesses hit by high winds and floods in the counties of Hawaii, Honolulu and Maui can apply for low-interest disaster loans — but not those on Kaua‘i. The U.S. Small Business Administration said it plans to offer loans to offset economic losses because of reduced revenue caused by high winds, rains and flooding that occurred between Dec. 7 and March 26.
The businesses can qualify for loans up to $1.5 million.
But because eligibility is based on the financial impact of the disaster, and not actual property damage, Kaua‘i residents won’t be eligible for the loan. In other words, Kauaians simply didn’t lose enough, or not enough people reported losses.
“The loans are invoked by people telling us that they had losses to their business or crops,” said Mark Marshall, Kaua‘i county civil defense administrator.
County civil defense and the Mayor’s office usually get together and discuss options, then call the Federal Emergency Management Agency or the Small Business Administration and apply for the loans, Marshall said.
Lately, farmers and smaller commercial businesses have reported that finding additional disaster insurance, including hurricane insurance, has been difficult and expensive. The state of Hawaii’s Insurance Commissioner’s office recently reported that prices for hurricane insurance has more than tripled.
“Hurricane insurance is a rider plan, and the state insurance commission required to offer the insurance,” Marshall said.
As for flood insurance, only two companies are federally backed, said Marshall: Mutual of Omaha and FEMA, whose rates are set by the federal government. Most hurricane zones fall within the same zones mapped as flood zones by the county. So flood zones are often hurricane zones, and businesses that fall in those zones find themselves paying more for hurricane insurance. And then there’s the U.S. Department of Agriculture’s Noninsured Crop Disaster Assistance Program, known as NAP. Administered by the Kaua‘i Farm Service Agency, it’s a little-known and little-used safety net program that offers farmers 55 cents on the dollar for half their crop’s value should a natural disaster strike, such as hurricane, pest infestation, rainy or windy weather.
