Reporting by Justin Reutter, Pueblo Chieftain
Coloradans affected by the Aspen Acres Fire and subsequent burn-scar flooding can now apply for low-interest disaster loans through the U.S. Small Business Administration.
According to a recent news release, businesses and nonprofits can apply for SBA disaster loans of up to $2 million to “repair or replace disaster-damaged or destroyed real estate, machinery and equipment, inventory, and other business assets.”
Homeowners and renters can also apply for loans of up to $100,000 to repair or replace personal property such as clothing, furniture, vehicles and appliances, and homeowners can apply for up to $500,000 to repair or replace their primary residence.
Interest rates for the loans are as low as 4% for businesses, 3.625% for nonprofits, and 2.875% for homeowners and renters, with terms up to 30 years, according to SBA officials. Interest does not begin to accrue, and payments are not due until 12 months after the first loan disbursement.
“When disasters strike, SBA’s Disaster Loan Outreach Centers perform an important role by assisting small businesses and their communities,” Chris Stallings, associate administrator of the Office of Disaster Recovery at SBA, said in the release. “At these centers, our SBA specialists help business owners and residents apply for disaster loans and learn about the full range of programs available to support their recovery.”
Pueblo County residents can apply at the Disaster Loan Outreach Center in the Pueblo County Government Services Center at 201 W. 8th St., Suite 310. The center is open Monday through Friday from 8 a.m. to 5:30 p.m.
How SBA disaster loans became available
The new aid comes after Colorado submitted a request for SBA assistance on Oct. 9, according to a release from the governor’s office.
“Coloradans recovering from the Aspen Acres Fire deserve every opportunity to rebuild and bounce back,” Gov. Jared Polis said in the release. “Colorado moved quickly to secure this assistance, and now families and businesses can apply for low-interest loans to repair homes, replace belongings, and reopen doors. I encourage affected Coloradans to explore these resources and get the support needed to move forward.”
In September, the Trump administration approved the public assistance portion of Colorado’s Major Disaster Declaration request but denied the individual assistance (IA) and hazard mitigation grant funding (HMGP) portions.
The state later appealed the federal denial of the hazard mitigation funding to help affected communities reduce the risk of future disaster damage, but Polis said the state opted not to appeal the denial of Federal Emergency Management Agency individual aid.
That decision was made because federal procedure prevents the SBA from declaring an independent physical disaster while a FEMA individual assistance appeal is active or pending, as federal programs must coordinate benefit determinations, according to the governor’s release.
“An IA appeal could take months, with no federal deadline for the President to decide on a state’s MDD appeal request,” the governor’s office said. “Given that uncertainty and recent delays in disaster assistance nationwide, Colorado is pursuing SBA assistance as the most reliable and immediate path to additional recovery resources for affected families and businesses.”
Colorado’s appeal of the hazard mitigation funding denial seeks money for long-term efforts to reduce damage from future disasters, including flood prevention, stormwater system upgrades and wildfire risk reduction.
Those investments would protect communities and reduce future recovery costs, the release states. FEMA research has shown that federal grants for disaster risk reduction save an average of $6 for every $1 spent.
Pueblo County has also received watershed assistance
Separately, Pueblo County has received assistance for emergency watershed protection projects, with the state covering 75% of the nonfederal share.
Because of that aid, Pueblo County will be responsible for only roughly $950,000 of more than $18 million in watershed protection costs through late fall 2027.
The Colorado Office of Emergency Management agreed to cover roughly $2.85 million, or 75% of the roughly $3.8 million nonfederal share. The Pueblo Conservancy District contributed another $500,000, leaving Pueblo County responsible for roughly $950,000.
The remainder of the cost, just over $14 million, will be covered by the federal government, according to the USDA grant and agreement award.
Pueblo County Commissioner Miles Lucero told the Chieftain that the money could be used in several ways to enhance watershed protection in the areas affected by the Aspen Acres Fire. These include expanding the width of culverts, improving Pine Drive water intake infrastructure, installing riprap — a protective layer of rock used to control erosion — along sloped areas, or creating flood barriers in certain areas.
The county has roughly 400 days to complete the necessary work, Lucero said.
Justin Reutter covers public safety, county government, and business news for the Pueblo Chieftain. Contact Justin at jreutterma@gannett.com or follow him on X @jayreutter1. Support local news; subscribe to the Pueblo Chieftain at subscribe.chieftain.com.
This article originally appeared on The Pueblo Chieftain.
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