Colorado Asks SBA for Disaster Loans After Fires and Flooding

Colorado has asked the U.S. Small Business Administration to open disaster lending to homeowners and business owners hit by two wildfires, the Aspen Acres and Gold Mountain blazes, and by flooding that followed in the burn zones, ColoradoBiz reported.

The request would make low-interest loans available for property repairs, replacing damaged possessions, and business recovery and operating costs. The money has to be paid back, and borrowers must still clear SBA approval and eligibility checks.

The governor's office said the state will not challenge the federal rejection of FEMA Individual Assistance, because the SBA cannot issue its own physical disaster declaration while such an appeal is open. State officials said an appeal could drag on for months, with no set deadline for a presidential ruling.

"Every week they wait is another week they can't start rebuilding," U.S. Sen. John Hickenlooper said of affected households.

Colorado is separately appealing the denial of Hazard Mitigation Grant Program money sought for flood control, stormwater upgrades and wildfire risk work. Washington approved the Public Assistance piece of the state's major disaster declaration on Sept. 4, then notified Colorado on Sept. 18 that Individual Assistance and mitigation funding were denied.

Gov. Jared Polis said on Oct. 2 that the state would pay 75% of the local match for Emergency Watershed Protection work in Ouray, Pueblo and Custer counties, a program run by the USDA's Natural Resources Conservation Service. Loan eligibility details are to follow.

This story was first reported by ColoradoBiz.