Las Vegas Sun

March 28, 2024

Flood victims begin quest for SBA loans

A couple of dozen homeowners trickled into the temporary Small Business Administration office Tuesday, a slow but steady flow of Las Vegas residents seeking help in recovering from the severe flooding of Aug. 19.

Tuesday was the first day of operation for the SBA office, tucked into Las Vegas' West Service Center at 3001 Ronemus Drive, near Cheyenne Avenue and Buffalo Drive.

A blue, yellow and white banner and some signs placed on the street directed residents to the office, which is aiming to process loans quickly.

Depending on how fast people file their paperwork, "it can be as short as a couple of weeks to money," SBA spokesman Ken Shuman said.

The Aug. 19 storms dumped up to 3 inches of rain in some areas, forming raging torrents that swept into homes and businesses, ripping up landscaping and depositing mud and other debris in swimming pools and living rooms.

That's exactly what Kevin Crawford said happened to him. Crawford, who was at the SBA office Tuesday, said his pool is full of debris, his yard was stripped -- including two trees lost -- and he'll have to replace the carpeting and part of the drywall in his front room.

"I don't know (exactly) how much it will cost yet," Crawford said. He estimated it could cost up to $5,000. His insurance policy paid for some roof damage, giving him $885, but would not pay for damage caused "once the water hits the ground and comes up," he said -- in other words, flooding.

The SBA loans, which are geared toward people in Clark County who can show they sustained damage to a home or business during the flood, provide interest rates from 2.562 percent to 5.125 percent for homeowners, and from 3.1 percent to 6.199 percent for business owners.

Homeowners are eligible for up to $200,000 to repair or replace real estate, and renters and homeowners can get up to $40,000 for damaged property. Business owners are eligible for up to $1.5 million.

Crawford, a software developer who lives in the 4000 block of Forest Knoll, said he wasn't sure whether he'd apply for the loans, but figured he'd check every option.

Some homeowners have said they didn't want loans, instead seeking straight grants. The city cannot give out money, officials have said, and the Red Cross offers only emergency response -- securing homes, getting people clothes, food and shelter.

The city last week announced a fund-raiser and a series of ads seeking donations to recoup the Red Cross expenses, estimated at $300,000. No dollar estimate has been given for the total damage, but officials have said 180 homes and 80 businesses were damaged.

The loan process is simple, Shuman said: There are two loan officers, and several investigators are expected to be on hand by today.

Residents show up and sign in, then get a quick interview in which the loan officers explain the program and the application. The residents fill it out, then bring it back. Inspectors survey the damage, come up with a dollar amount for repair or replacement, attach that to the application, and send it to the regional office in Sacramento.

A loan officer calls the applicant, and gives them a "strong indication" of whether or not the loan will be approved, Shuman said. They mail the loan documents to the applicant, who signs and returns the forms. "The next step is loan disbursement," Shuman said.

Residents have until Nov. 3 to file loan applications for property damage.

Arthur Baker, who lives on Solitude Road, said after his initial minutes-long interview with a loan officer that he was encouraged so far, especially "having dealt with the government for 38 years."

He guessed damage to the floors and walls of his home was in the range of $15,000, and in his neighborhood, "I'm the least of the damaged."

archive