GloucesterTimes.com, Gloucester, MA

Hundreds of people have already applied for loans since the May deluge drowned Cape Ann.

Five hundred forty-one homeowners and renters and 41 businesses have been approved for these loans in Essex, Middlesex and Suffolk counties, said Mike Stamler, director of the association's press office. In total, a little more than $17 million has been approved for the loans, Stamler said.

Congressman John F. Tierney, D-Salem, and members of the Northeast Legislative Caucus said there are less than two weeks left for businesses, homeowners and renters who suffered losses in the Mother's Day flooding to submit disaster loan applications with the U.S. Small Business Administration.

Those who sustained physical damage in Essex County are eligible to apply by the July 24 deadline. The deadline for economic injury applications is Feb. 26, 2007.

"It takes only a few minutes to complete these applications," Tierney said in a press release. "By doing so, people keep options open for themselves. The U.S. Small Business Administration stresses that anyone considering applying must do so before the deadline. They then have six months to decide whether to accept the loan."

Warren Whitehead's Gloucester car repair business, Whitehead Motors on Poplar street, lost 13 cars and thousands of dollars because of flooding. Within weeks, however, Whitehead reopened his doors to customers.

Whitehead said he applied for the U.S. Small Business Administration's disaster loan assistance program, which offered him $124,000, but he declined on the loan.

"I'm 65 years old, and I don't want another loan," he said.

Whitehead said he'd have to apply for another mortgage to pay off the loans, which offered him terms of 4 percent over 30 years.

Whitehead said the total damage from the storm will cost him about $150,000. He said his business is already starting to restock its used car inventory, though it has spent a lot of money out-of-pocket.

The Small Business Administration offers loans up to $200,000 to repair disaster damage to primary residences, according to the press release. Homeowners and renters are eligible for loans up to $40,000 to replace personal property including furniture, appliances and clothing. Loans to businesses of all sizes and nonprofit organizations are available up to $1.5 million to repair damage to real estate, machinery, equipment and inventory. Economic Injury Disaster Loans are also available to small businesses unable to pay bills or meet operating expenses because of the disaster.

"While we are currently working to frame a relief package, it is highly unlikely that anyone who has not fully explored their options for federal assistance will be eligible for state relief, since that relief will be intended to supplement the federal programs," said state Sen. Bruce Tarr, R-Gloucester, in a separate press release.

Interest rates, accordinng to Tierney's press release, can be as low as 2.937 percent for homeowners and renters and 4 percent for businesses with terms up to 30 years. Loan amounts and terms are set by the administration and are based upon each applicant's financial condition.

SBA Disaster Loan Assistance Centers in Essex County

Victims who suffered damage from the severe storms and flooding beginning May 12 are encouraged to apply for a loan by visiting a Disaster Loan Assistance Center or by calling the administration's customer service center at 1-800-659-2955.

Operating hours for the customer service center are Monday through Saturday, 8 a.m. to 9 p.m. Hearing-impaired callers can call 1-800-877-8339. Loan applications can also be downloaded from the administration's Web site, www.sba.gov/disaster.

Completed applications should be returned to a Disaster Loan Assistance Centers or mailed to the U.S. Small Business Administration, National Processing and Disbursement Center, 14925 Kingsport Rd., Ft. Worth, TX 76155.

Assistance centers in Essex County are in Haverhill and Lawrence: United Way of Merrimack Valley, Ward Hill Industrial Park, 237 Neck Rd., Haverhill, MA 01835. Open Monday to Friday, 8 a.m. to 5 p.m; Lawrence Public Library, 51 Lawrence St., Lawrence, MA 01841. Open Monday to Thursday, 9 a.m. to 6 p.m., Friday 9 a.m. to 5 p.m.