News Releases
Office of Governor Gary Locke
FOR IMMEDIATE RELEASE - July 24, 1998
Contact:  Governor's Communications Office, 360-902-4136

Locke encouraged by Small Business Administration action for victims of landslide in Kelso

KOBE, JAPAN - Gov. Gary Locke said today he was encouraged that the U. S. Small Business Administration has begun work in Kelso with residents in the Aldercrest subdivision whose homes have been damaged by a landslide.

"We are very disappointed that the Federal Emergency Management Agency rejected a request to aid these homeowners," Locke said, referring to a decision this week by the federal agency to not declare the Aldercrest slide a federal disaster. The agency said the number of people affected and the dollar amount of damage did not meet the federal disaster declaration threshold.

"But it is encouraging that officials of the Small Business Association Friday collected the information necessary for SBA low interest loans to help the Aldercrest residents," Locke said. "It is our understanding that those loans would have been the biggest part of the aid package if a federal disaster declaration had been issued. The information for the SBA loans has been sent to California for processing, and we hope to hear back within 10 days."

Locke is on a trade mission to Japan and Taiwan and has been kept apprised of the FEMA and SBA process in Kelso.

Locke said he had directed his staff to write SBA officials immediately to urge approval of the low interest loans. Noting that the SBA loans would have been the major part of the FEMA aid if it had been approved, Locke added, "At least these homeowners will be getting the large share of the aid if the SBA applications are approved."

The loans could be used to move the damaged houses, but if that is not possible because of terrain and other factors, the loans could be used for buying new housing. The loan rates generally run from 4% to 8% on a 30-year lending package.

Representatives of the governor's southwest Washington office and the state office of Emergency Management Services met with SBA officials and some homeowners in Kelso on Friday.

"We will continue to keep a close watch on the situation in Kelso and gather information while we decide whether an appeal of the FEMA rejection is the wisest course," Locke said. "The federal officials have informed us that we must have new information in order to file an appeal. One thing that concerns us is that if we appeal the FEMA decision, that will put the SBA process on hold and delay those low-interest loans. This has been an terrible experience for those Kelso homeowners, and we will continue to do what we can for them."

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