LIHU‘E — Many island residents continue to navigate through an overflow of obstacles after the intense April flooding event that damaged about 177 residences and 26 businesses on the Garden Island.
The U.S. Small Business Administration (SBA) recently announced it is now offering low-interest federal disaster loans for businesses and residents affected by the floods on Kaua‘i.
Representatives from SBA hosted a Disaster Loan Outreach Center at the Kalaheo Neighborhood Center on Thursday, May 23, and will be available Monday through Friday, from 9 a.m. to 6 p.m., until further notice.
SBA representatives on-site at Kalaheo expressed the importance of having flood insurance.
“SBA recommends that you check up on your insurance, see what you have coverage for. I know for flood insurance there is a 30-day waiting period from when you place the insurance to when you can make the claim, so get your flood insurance now,” said SBA Public Information Officer Cynthia Cowell.
Disaster loans of up to $500,000 are available to homeowners for repairs and to replace damaged or destroyed real estate.
According to the SBA report, homeowners and renters are eligible for up to $100,000 to repair or replace damaged or destroyed personal property, including personal vehicles. Secondary homes or vacation properties are not eligible for the loans.
One of the local residents and business owners impacted by the flooding was Tammy Riley of Koloa.
“Water came in from the top of the road and the neighbors lava rock wall funneled the water into our business,” said Riley, who has been paying out of pocket for flood damages since April.
“I started the process online so, by the time I arrived I was very prepared and we were in and out very quickly. Right now, our process is pending and we are waiting for SBA to assign us a case manager and we will go from there.”
Interest rates can be as low as 4 percent for businesses, 3.25 percent for private nonprofit organizations, and 2.688 percent for homeowners and renters with terms of up to 30 years. Loan amounts and terms are set by SBA and are based on each applicant’s financial condition.
The interest does not accrue until 12 months after the first disaster loan disbursement date. SBA disaster loan repayment begins 12 months from the first disbursement date.
“We are thankful for their assistance because we been looking, calling, and watching patiently. We even called FEMA so, as soon as they opened we came here,” added Riley.
“We encourage affected residents and businesses in need of flood recovery assistance to apply for these loans as soon as possible,” said Kaua‘i Emergency Management Agency Administrator Elton Ushio.
Applicants may apply online and receive additional disaster assistance information at SBA.gov/disaster. The deadline to apply for property damage is July 22, 2024. The deadline to apply for economic injury is Feb. 21, 2025.
