A CITY IN CRISIS : Federal Loans, Grants to Be Available for Losses
A spokesman for the Federal Emergency Management Agency said in Washington late Saturday night that the disaster aid ordered by President Bush would enable homeowners to qualify for low-interest loans of up to $100,000 to cover uninsured losses from the disorder.
Businesses would be able to qualify for loans up to $500,000 for such uninsured losses; the rate of interest would range from 4% to 8%, depending on prevailing market rates.
Among the grants available under the program, which will be coordinated by FEMA, are allowances for up to 18 months of rental payments for those displaced by fires and other damage. Other grants of up to $11,500 would be available to those not otherwise covered by federal assistance programs.
A separate program makes available unemployment assistance to those put out of work as a result of damage but not covered under a state or local relief program.
The assistance provided to local governments to repair or rebuild damaged facilities is offered under a matching basis in which the federal government covers 75% of the cost, FEMA official Carl Suchoiki said.
Suchoiki declined to put an estimate on the amount of federal funding that will be made available. “Basically, it’s whatever it takes,” he said.
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