SACRAMENTO, Calif. – Administrator Isabella Casillas Guzman, head of the U.S. Small Business Administration and member of President Biden’s Cabinet, announced today that SBA is increasing the rebuilding cost estimates for Boulder County property owners affected by the wildfires and straight‑line winds that occurred Dec. 30, 2021 - Jan. 7, 2022.
“Boulder County property owners were hit extremely hard by the devastating wildfires that left many with significant losses,” Administrator Guzman said. “By adjusting our lending calculations to meet local rebuilding costs and increase loan eligibility, we hope to ensure disaster-impacted residents are getting the appropriate financial assistance and resources they need. As our communities who have suffered damage or loss work hard to recover, the SBA and its federal colleagues in the Biden Harris Administration will continue to do everything possible to help them rebuild.”
“SBA conducted a thorough evaluation of the local building costs in Boulder County in order to give disaster survivors increased access to the affordable loan funds they need to fully repair and replace their damaged properties,” said Francisco Sánchez, Jr. of the SBA Office of Disaster Assistance. “The increased cost estimates will result in increased loan eligibility up to SBA’s $200,000 administrative loan limit for home repair and replacement,” he added.
Homeowners recovering from the wildfires have reported that local contractor estimates for the actual cost of construction are coming in much higher than SBA’s initial damage estimates, leaving them with reduced or no disaster loan eligibility after insurance recoveries.
As homeowners begin the rebuilding process, there can be several contributing factors that drive up the actual cost of construction. Some of these include significant changes in the availability and cost of labor, scarcity of materials and the pricing of materials. Additionally, the costs to address local code required building upgrades can also play a large factor in the costs to rebuild.
SBA’s Processing and Disbursement Center will communicate directly with applicants and borrowers on loan changes. They will work closely with impacted residents to reprocess disaster loan decisions and modify existing loans to increase loan eligibility based on increased damage estimates.
Applicants and borrowers may also call SBA’s Customer Service Center at (800) 659-2955 or email disastercustomerservice@sba.gov for more information on SBA disaster assistance. For people who are deaf, hard of hearing, or have a speech disability, please dial 7-1-1 to access telecommunications relay services. Completed applications should be mailed to U.S. Small Business Administration, Processing and Disbursement Center, 14925 Kingsport Road, Fort Worth, TX 76155.
###
About the U.S. Small Business Administration
The U.S. Small Business Administration makes the American dream of business ownership a reality. As the only go-to resource and voice for small businesses backed by the strength of the federal government, the SBA empowers entrepreneurs and small business owners with the resources and support they need to start, grow or expand their businesses, or recover from a declared disaster. It delivers services through an extensive network of SBA field offices and partnerships with public and private organizations. To learn more, visit www.sba.gov.