Washington, D.C. —- Three members of eastern North Carolina’s Congressional delegation are urging federal assistance for communities damaged by tornadoes last weekend.
Congressmen Bob Etheridge, G. K. Butterfield and Walter B. Jones wrote to the U.S. Small Business Administration asking that low-interest federal loans be quickly provided for people affected in Johnston and Wilson Counties.
“We have no doubt we will pull together to rebuild these communities to make them stronger than ever,” the three wrote in the letter to SBA Acting Administrator Sandy K. Baruah. “However, it is critical that these communities be afforded all assistance possible, particularly at a time when economic distress exacerbates the situation.”
N.C. Gov. Michael Easley has requested that SBA declare Johnston and Wilson counties as federal disaster areas, and the delegation letter strongly supports that request.
“The tornados may have destroyed many homes and upended the lives of many families, but the generous and caring people of North Carolina are already stepping forward to help them put their lives back together,” Butterfield said. “It’s crucial that the federal government be a partner in mitigating this disaster.”
“At a time when our economy is already in a deep downturn, we must ensure that the families who have lost property receive the assistance they need to rebuild their homes and businesses,” said Etheridge.
“I am hopeful that the SBA will take quick action in granting Governor Easley’s request for federal disaster assistance so the Eastern North Carolina residents affected by these tornadoes may receive the help they need to continue rebuilding and restoring their communities,” Jones said.
In the early morning hours of November 15, 2008, tornadoes, believed to be EF-2 to EF-3 on the Enhanced Fujita Scale, moved northeast along the Interstate 95 corridor at 45 to 55 miles per hour with winds of 130 to 135 miles per hour. Two people lost their lives, 59 homes were destroyed or damaged and six businesses reported major damage. Every damaged home in Wilson County was either uninsured or underinsured, while 23 of the 26 homes in Johnston County were either uninsured or underinsured.
If SBA designates the two counties as federal disaster areas, loans up to $200,000 would be made available to homeowners to repair or replace damaged or destroyed real estate. Homeowners and renters would be eligible for up to $40,000 to repair or replace damaged or destroyed personal property.
Businesses would be able to borrow up to $1.5 million to repair or replace damaged or destroyed real estate, machinery and equipment, inventory, and other business assets. SBA can also lend additional funds to help with the cost of making improvements that protect, prevent or minimize the same type of disaster damage in the future.
Interest rates can be as low as 2.75 percent for homeowners and renters and 4 percent for businesses with terms up to 30 years. Loan amounts and terms are set by the SBA and are based upon each applicant’s financial condition.
TEXT OF THE LETTER
November 20, 2008
The Honorable Sandy K. Baruah
Acting Administrator
U.S. Small Business Administration
409 3rd Street, SW
Washington, DC 20416
Dear Administrator Baruah:
We write to support Governor Michael Easley’s request for a declaration of Johnston and Wilson Counties, North Carolina as federal disaster areas. This response is needed immediately to help families from our districts in eastern North Carolina rebuild in the aftermath of tornadoes that devastated the area over the weekend, killing two people and displacing up to 125 people.
On November 15th in the early morning, the tornadoes, believed to be EF-2 to EF-3 on the Enhanced Fujita Scale, moved northeast along the Interstate 95 corridor at 45 to 55 miles per hour with winds of 130 to 135 miles per hour. In addition to the loss of life and injuries sustained, the storms destroyed or damaged 26 homes in Johnston County and caused major damage for five businesses. In Wilson County, 33 homes were destroyed or damaged, while one business had major damage and two businesses reported minor damage. Every damaged home in Wilson County was either uninsured or underinsured, while 23 of the 26 homes in Johnston County were either uninsured or underinsured.
Our hearts go out to the community and especially to the families directly affected by this tragedy. We have no doubt we will pull together to rebuild these communities to make them stronger than ever. However, it is critical that these communities be afforded all assistance possible, particularly at a time when economic distress exacerbates the situation.
We respectfully request your approval of Governor Easley’s request as soon as possible. This designation will make it possible for our communities to pick up the pieces and get on with their lives.
Thank you very much.
Congressman Bob Etheridge
Congressman G. K. Butterfield
Congressman Walter B. Jones