CIA - Flood Relief - Getting Help

You asked.  We answered. There is additional help for homeowners who may not have enough money to fix their homes from the September floods.  Even if you don't qualify you need to apply to be eligible for additional FEMA grant money.  Take a look at our story then come back here and check out the links.

Apply for Disaster Assistance Loans

Kelly Monroe wanted to clarify his situation further and sent us an email following this story. His comments are posted below.

Good Morning Ross:

I just watched the story regarding Flood Relief this morning and would like to add a couple points and offer a few items that your viewer'  should know. 

I had 3 properties flooded in Austell, and the SBA loan offer was for  $58,700 included all three properties not just one.  This is not clear in the segment and might get some people fired up as comparable properties I have heard are receiving approximately $14,000 in FEMA grants (owner occupied).  I have not heard of anyone getting SBA loans in the neighborhood.

Below is a breakdown of the loan offered to us through the SBA.  This is a loan at 4% interest payable over 30 years with monthly payments of $286.00.   Also it is important to note that the SBA does not deposit the entire loan amount into my bank account as is done with FEMA grants.  It is my understanding that they will disburse 14,000 initially and additional funds as needed and construction progresses and verification of receipts.  If you don't use the money  you do not get it.  Viewers will have the impression that I received a $58k check which is not the case.   Though we have been approved, we are not taking any of the SBA loan for reasons listed below, and to date have not gotten any direct financial assistance from any government body.  I would like to add that the City of Austell has been great in placing dumpsters and picking up debris.

Loan Breakdown:

2718 Greystone Court Austell  

Repair/Replace disaster damaged real estate:   $24,000.

Disaster cleanup                                                               $200.

Equipment replacement (Appliances)                    $1,400.

2710 Greystone Court Austell

Repair/Replace disaster damaged real estate:   $19,800.

Disaster cleanup                                                               $200.

Equipment replacement (Appliances)                    $1,300.

5116 Lakeview Court Austell                                      

Repair/Replace disaster damaged real estate:   $8,500.

Disaster cleanup                                                               $200.

Equipment replacement (Appliances)                    $400.

Combined economic injury (loss of income)        $2,700

Caveats to the SBA loan and the reason that I am not proceeding with the loan. 

·         The SBA wants to use my primary residence as collateral for the loan and not my "business property".  ( Not good for us!!!)

·         Borrower will not sell or transfer collateral without written consent of SBA.   (What if we want to sell our home).

·         SBA requirement to purchase flood insurance.  (I do not know if someone getting a grant from FEMA is required to do the same).

·         SBA requirement to provide yearend financial statements reviewed by an independent public accountant at my expense.  (I am a small business and do not have public accountant's) not can I afford the expense.

·         I am required to write a check for $260.  for a title search for the collateral property.   A local attorney will only charge $125 for a title search for a typical home closing.  I am a small 1 person business who suffered a disaster related loss during tough economic times...I don't want to waste $260 dollars on a title search!  

In addition to not wanting to adhere to  SBA guidelines for the next 30 years, my wife and I have lived frugally , saved some money over the years sufficient to make these repairs at significantly less cost than SBA estimates.  I continue to add that my complaint with the whole government disaster assistance program is the unjust manner in which the assistance is distributed. 

Thanks for your story and time.

Kelly Monroe