FLOOD AID HELPS BUSINESSES, EMPLOYEES

Assistance is available to businesses and employees displaced by the Mississippi River floodwaters.

"Although, there are no direct grants or anything like that available for businesses, businesses can apply for loans from the Small Business Administration," said Sharon Riegel, public information officer for the Federal Emergency Management Agency.

Any size business can apply for the SBA disaster loan for physical damage, said Jill Finnie, public information officer with the Small Business Administration. Small businesses are also eligible for economic injury disaster loans in addition to the physical loans, she said.

"The economic loans are to cover the business' working capital for a period of time when they are economically affected by the situation," Finnie said. "This loan helps the business meet its bills and expenses until it can get back to work," she said.

All of the SBA's loans are for what is not covered by the business' insurance, and a business can borrow up to $500,000, Finnie said. Both the physical and economic loans have an interest rate of 4 percent for almost everyone, and the loan is for up to 30 years, she said.

Once the businesses have contacted FEMA and have an application, then it is good for them to talk with the SBA about the loan, Finnie said. These loans are different than a bank loan, but the business still needs to be able to show it can repay the loan, she said.

The SBA also expands its role during a disaster and covers homeowners and renters who have had property damaged, Finnie said. "We don't want to just help the business sector; we want to help the entire community," she said.

Businesses and homeowners can begin the process by finding out what aid is available to them by contacting the FEMA office at 1-800-462-9029.

Aid is also available to self-employed business owners and farmers who have been affected by the flood.

"Disaster unemployment is available for these two groups, and it is a federal program administered by the employment security office," said Bob Baysinger, information officer for the Missouri Division of Employment Security. "This program kicks in when the president declares a county or an area a disaster area," he said.

To apply for the aid, applicants need to contact the Division of Employment Security or FEMA, Baysinger said. They also need to take proof of their earnings for the prior year, like their 1992 tax return, so it can be determined what benefits are available to them, he said.

Baysinger said regular unemployment is available for those who are put out of work through no fault of their own. "Determinations will be made on an individual basis," he said, "but if someone is out of work then they should file a claim and the agency will take it from there."

Normally, people drawing unemployment have to report to the office once every four weeks, and there is a job-search requirement, Baysinger said. But Gov. Mel Carnahan has waived those requirements until further notice, he said.

Since there are so many people out of work and businesses closed, Baysinger said, it does not make sense to have people looking for work under those circumstances. "It's self-defeating," he said.

The Division of Employment Security is doing everything it can to help people across the state who have been affected by the flood, Baysinger said. "We are doing everything we can to respond to what is probably the greatest disaster in the state's history," he said.

Anyone with questions concerning unemployment assistance should call 1-800-788-4002.