###

As flood recovery continues in King Salmon, the Humboldt County Board of Supervisors on Tuesday went over the details of two loan programs — one local, one federal — aimed at helping affected residents, many of whom face tens of thousands of dollars in property damage. 

Just last week, one month after record-breaking floodwaters inundated King Salmon, the Humboldt County Office of Emergency Services (OES) received confirmation that the county had been declared a “disaster area” by the U.S. Small Business Association, and therefore qualified for its disaster loan program. The federal program provides loans up to $2 million for businesses and nonprofits impacted by disaster, and up to $500,000 in funding for homeowners and renters.

Not knowing that the county had already qualified for the SBA’s loan program, First District Supervisor Rex Bohn asked county staff to draw up a proposal for a zero-interest loan program to help impacted residents with their insurance deductibles. 

Bohn | Screenshot

“I didn’t know anything about the SBA loans,” Bohn explained at Tuesday’s meeting. “I was hoping we could do something very seamless — $300,000 or something like that — to cover their deductibles, which are [between] $5,000 and $10,000. … I’m looking at 30 to 40 homes that probably need it. Some have already made the repairs and some have the money to do it, but I thought it would be a gesture [of goodwill] from the county.”

Bohn added that he would “really, really like to look at what we consider emergencies,” apparently referring to the county’s decision-making process in declaring local disasters. 

As previously reported by the Outpost, Humboldt County Sheriff William Honsal chose not to declare an emergency in King Salmon because there were “no significant impacts to roads, utilities, public facilities or critical services.” Emergency declarations are “intended for situations where impacts exceed the routine capabilities and resources of the county,” he said. 

According to data from Humboldt Communities Organizing in Active Disaster (COAD), at least 42 households experienced “major flooding” impacts on New Year’s weekend, which, had a local disaster been declared, could have qualified residents for disaster assistance through the state or the Federal Emergency Management Agency (FEMA). 

While FEMA may be the most recognizable name in the federal emergency response universe, Danielle Haywood, a spokesperson for the SBA’s Office of Disaster Recovery and Resilience, told the board that the SBA is “the number one source of funding post-disaster nationwide.”

Haywood | Screenshot

“We actually provide more funding than even FEMA does,” she said, noting that the program isn’t exclusive to King Salmon. Anyone who was impacted by storms between Jan. 1 and 5 can apply for federal assistance, even folks living in Del Norte, Mendocino, Trinity and Siskiyou counties. “The purpose of our agency is to provide a lifeline that leads to recovery for the communities that are impacted by disaster.” 

The SBA’s program is “truly interest-free” for the first 12 months, with no early repayment penalties, Haywood said. Loan recipients can also use the funds to refinance their homes or to relocate to a new area. 

Asked whether a county-funded program would interfere with the SBA’s work, Haywood said the SBA would not allow “double dipping” from local and state resources. “If somebody was going to pursue sources of funding elsewhere, it would reduce the amount that they could be approved of with us,” she said.

Asked about the turnaround time on a loan application, Haywood said it depends on the person, but it’s usually within a week. 

“It depends solely on the applicant,” she said. “Sometimes people don’t have the documents they need, and that’s what holds up our application side. … I’ve personally seen somebody apply on a Monday and be approved and able to accept their funding by Friday, but that isn’t an every person thing.”

Bohn reiterated that he only brought the item forward to “see if there was an appetite for it,” but felt Haywood and the SBA team had “everything covered.”

At one point in the discussion, County Administrative Officer Elishia Hayes noted that a county-funded loan program would be difficult to implement.

“I do have to just say — because if I don’t, then my staff will probably wring my neck when I go back into the office — administratively, this is not going to be a light lift,” Hayes said. “We saw that in developing a program in Rio Dell for the earthquakes, and this would be a full program development that would need to take place. … This is a slippery slope for your board to implement programs of this magnitude.”

After about an hour of discussion, everyone seemed to agree that implementing a county-funded loan program would be redundant and cumbersome. Bohn noted he wouldn’t be “butthurt” if the board didn’t approve his plan. 

“I know the headline ‘the county doesn’t want to do a zero-interest loan program to help people’ is going to sound bad, but I think we’re just not poised and ready to do it,” said Fourth District Supervisor Natalie Arroyo. “I would prefer to really support and promote the SBA loan program, and give a platform to those who are already doing this work around vulnerability and options, and really lift up the work that they’re doing.”

Going back to Bohn’s previous point about clarifying the criteria around the county’s disaster declaration process, Board Chair Mike Wilson suggested the board set up an ad hoc committee to investigate. Bohn said he wasn’t interested in participating in the ad hoc. 

After some additional discussion, Second District Supervisor Michelle Bushnell made a motion to form an ad hoc committee with Arroyo and members of Humboldt COAD, Humboldt OES, the sheriff’s office and the CAO’s office to discuss long-term disaster recovery. 

The motion passed in a 5-0 vote.