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Published - Wednesday, August 29, 2007
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Feds offer loans, grants, but flood victims ask if it will be enough

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RUSHFORD, Minn. — Roger Colbenson is devastated.

His $300,000 home on North Maple Street flooded. So did his greenhouse, Rushford Flower Baskets, and his two-unit apartment complex next door. He lost his $200,000 baseball card collection, his 1977 El Camino and 110 vintage comic books.
US Sen. Norm Coleman, right, speaks with Mac McCauley of Winona, Tuesday, after addressing small business owner’s concerns, along with SBA Administrator, Steve Preston, background, at the Flood Relief Center in Goodview. McCauley was getting answers for relatives who have flood damage to their Junction Inn restaurant in Hokah.

Colbenson’s was one of about 70 Rushford businesses damaged by floods Aug. 18 and 19. According to preliminary damage reports from the Federal Emergency Management Agency, Fillmore County suffered $2.5 million in business damages, by far the worst of the seven Minnesota counties affected.

For flood victims and business owners, the mounting damage all adds up to one big price tag.

“I did take it pretty hard to start,” said Colbenson, 66. “If I was a drinking man, I’d probably be drunk.”

The question on their minds: Will their loss estimates align with federal disaster aid?

To show economic and financial support has arrived, U.S. Sen. Norm Coleman and top officials from the U.S. Small Business Administration toured relief centers in Winona and Rushford on Tuesday.

“I hope the message we give to all the people is that we are doing everything we can do to lift you up and bring you back,” Coleman told a small audience in Winona.

In spite of its name, the SBA doesn’t just assist businesses.

It’s like the bank of the federal government and interacts directly with FEMA, said administrator Steven Preston. The agency can provide homeowners, renters and business owners with low-interest loans to help relocate or rebuild property when insurance doesn’t cover the losses.

“If a homeowner asks for assistance but can’t handle a loan, they can still qualify for FEMA grants,” Preston said. “If they’re not eligible for the SBA (loans), it doesn’t cut you out for assistance.”

Flood victims need to register with FEMA first, said public information officer Brad Craine. This will get them into their system, identify where they live and what the damage was. Once registered, victims should visit the closest relief center to meet with the SBA and determine if they qualify for any low-interest loans.

“We don’t make promises. We determine if they qualify for an application,” said Don Wells, SBA disaster reserve specialist.

Families must meet certain income and debt limits to qualify. A five-person household would need to earn at least $35,100.

The SBA has taken in about 90 applications in Winona since Monday, Wells said. It will take 17 days to process for businesses and 12 days for homeowners.

“Following a disaster when you’ve lost everything… it’s so important to have a place to go and people to talk to and help you understand the application,” Preston said. “It’s important in demystifying the process.”

But for some local flood victims, the whole financial aid process is a mystery.

Colbenson lost his tax records, mortgage forms and property titles that he needs to apply for SBA loans.

To top it off, he had to tell his 91-year-old father, who is on a fixed income, that he didn’t make enough money to qualify for SBA and has to wait for a FEMA grant.

“It’s very confusing,” Colbenson said. “They don’t take anyone’s word for anything. We have to hunt for insurance forms—they’re all wet. They want a denial letter but everybody don’t have flood insurance.”

Reporter Amber Dulek can be reached at (507) 453-3513 or amber.dulek@lee.net.

How are FEMA and SBA assisting flood victims?

As of Tuesday, FEMA had awarded $1,073,987 in disaster relief to 1,456 applicants in the six flooded counties. FEMA grants of up to $28,600 could be available, but flood victims must go through a screening process with the Small Business Administration first.

STEP 1: Call FEMA at 1-800-621-3362 between 7 a.m. to midnight.

Inspector will call back in about three days to verify damages.

STEP 2: Visit with a representative from the U.S. Small Business Administration:

  • Winona County — J.C. Penney on highways 61 and 14

  • Houston County — Hokah Fire Hall on highways 44 and 16

  • Fillmore County — TRW Automotive Building in Rushford on Highway 43

  • Hours: Today to Saturday — 9 a.m. to 7 p.m.; Sunday — 9 a.m. to noon

    The SBA can provide:

  • Mortgage and loan refinancing

  • Relocation loans

  • Homeowners may get loans for up to $200,000 to cover loss of a primary property.

  • Renters and homeowners may get loans up to $40,000 for personal property damage.

  • Business may get up to $1.5 million for damages and economic injury relief.

  • Loans term can be up to 30 years and are locked in at 4 percent for businesses and 3.12 percent for homeowners.

    The application deadline is Oct. 22 for personal loans and May 23, 2008, for economic injury loans.

    The loans cover uninsured losses but will not cover secondary homes, personal pleasure boats, airplanes and recreational vehicles.

    Limited coverage for landscaping, swimming pools and property such as antiques and collectibles

    Income, debt, household size and insurance coverage will be used to define eligibility.
    .




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     Comments »

    Rushford wrote on Sep 7, 2007 3:03 PM:

    " I don't care if you lost a little or you lost alot. Everyone lost almost anything they ever worked for. Both situations are left at the same conclusion, next to nothing. Have some respect for the colbensons, and all the others in rushfords community that were affected by this situation. Everyones situation is different. What you assume to know about each families situation and what we know about about our own situations, they are night and day, and are no one elses business.Please have some respect during these tough times for all the families affected. "

    Preston Colbenson wrote on Sep 5, 2007 8:21 PM:

    " The people in this comment section that still have there home, apartment, and all there personal belongings which were not washed up in the flood need to stop there negative comments. Unless your home was condemed as my parents home was,or you lost almost everything you worked for as my parents did, you have no idea what were going through or how you would react during these tough times. Keep your negative comments to yourself please. It does make a tough situation any easier "

    Hmmmm.... wrote on Aug 31, 2007 9:25 PM:

    " I too know the Colbenson's. I am not condemning his wife because she did not make the statements; however, Roger. I am not sure I would be so quick to reveal the cost of my home (which I am not sure $300K is an accurate estimate for his home), collections, or anything else. Perhaps just being grateful for whatever help you get and not trying to take advantage of people would be the gracious thing to do. There are those who lost a home worth considerable less and are thankful for all the help that comes their way. Please Roger, don't make the rest of the victims look greedy/ungrateful by making thoughtless statements. Not everyone is expecting to be paid back for every single thing that was lost. Most just want a permanent roof, food, clothing, and thier families. Rushford thanks those who have helped or is planning to help. "

    Amanda S. (continued) wrote on Aug 29, 2007 9:21 PM:

    " Secondly, you cannot place caveats on your compassion for someone based off of whether or not they are Democrat or Republican. Do you suggest that we all wear a badge on our lapel to identify which way we lean, that way you can more easily determine who you care about and who you don't? That was quite simply the most ludicrous thing I have ever read. I'm embarassed for you that you think that way. My most sincere wishes go out to The Colbenson family that they get the help they need, AND deserve, to rebuild their lives. They were part of the heartbeat of Rushford, like so many others, and the town needs them. "

    Amanda S. wrote on Aug 29, 2007 9:20 PM:

    " I personally know The Colbensons, and reading some of these comments makes me absolutely sick that anyone could be so heartless. I have no doubt that the jealousy you so clearly harbor for those in life that have achieved more than you is what will continue to hold you back from reaching the same milestones that a hard-working man like Mr. Colbenson has. You don't know him, or his family, and if you did, you wouldn't have opened your big trap. As one blogger pointed out, he HAS been collecting those baseball cards since he was a child, and he passed the tradition on to his own sons. He has also been providing the City of Rushford with beautiful flowers to hang from their street lamps from HIS greenhouse for over a decade. "

    Saddened wrote on Aug 29, 2007 8:08 PM:

    " I think I read recently in the WDN that Rushford needed something like 1300 volunteers in the upcoming days. Perhaps some of you belly-aching people complaining about flood insurance, people lossing card collections, or what you assume will be a 'hand-out' from the government, would like to get on the list to the Rushford area and help out those who have lost EVERYTHING, and I mean EVERYTHING. Some people were lucky to get out with the clothes on their back. It doesn't matter if it is a card collection, the value of the home or the business it is the fact that it has happened. These folks need YOUR help now. "

    I got my info from the article above math whiz... wrote on Aug 29, 2007 8:00 PM:

    " quote "FEMA had awarded $1,073,987 in disaster relief to 1,456 applicants" EQUALS $737.63 ON AVERAGE... need a calculator to help you out?? - look at the prior quote - "the average amount that FEMA applicants get is just over $700 each? - that's too bad..." so someone you know got A LOT more, meaning some others got A LOT LESS... "

    Luxury FEMA trailers? What planet are you on? wrote on Aug 29, 2007 5:32 PM:

    " The FEMA trailers are NOT luxurious, and by the way, the FEMA trailer 'parks' down south are crime-ridden and drug-infested s**tholes. Residents are moved from one park to another as FEMA decides to close trailer parks. Some people are moved to an entirely different part of the state, far from jobs, schools and doctors they have established relationships with since being relocated. These moves force them to start all over again. Does this sound like luxury to you? "

    matt w wrote on Aug 29, 2007 4:51 PM:

    " Remember health risks involved with clean-up. I helped all week-end and monday morning had the worse diarea ever. Clean everything or throw it away. Never touch your face with your dirty hands. After 2 days sitting in the john, im better and ready to go at it again. "

    Where do people get their info? wrote on Aug 29, 2007 3:55 PM:

    " Where did you hear that FEMA will only give $700? My friend has other info. She applied for FEMA and they are looking at getting much more than that. In fact, enough to pay off their mortgage and leave Stockton. The amount depends on your insurance, your need, your home worth, your damage. There is no set amount that everyone will get it; it's different for each person. Stop believing the rumors that are going around. "

    Flood insurance wrote on Aug 29, 2007 3:51 PM:

    " I don't know where people are getting their info from. My daughter has flood insurance (thank God) and she only paid an extra $300.00 a year to her insurance bill. Not only that, her entire house, contents and shed with it's contents are covered. If you're insurance doesn't cover everything, then you should look else where for insurance. And as the person buying it, read all the fine print to make sure what is covered and for how much. "

    Hopefully.... wrote on Aug 29, 2007 3:21 PM:

    " All these people up north who were hit by the flooding contributed in some way to the victims of Katrina. What comes around, goes around. They will be blessed in return if they did. If they just sat and watched on tv when Katrina hit, thinking it would never happen to them, then they will soon see why the residents down south are still suffering and forgotten as they are still living in their luxury FEMA trailers, two years later, still waiting for their disaster aid to come in. They didn't even have a $300,000 house, greenhouse, and $200,000 collection of cards. "

    Flood Insurance Reality wrote on Aug 29, 2007 2:01 PM:

    " I wish someone, maybe the Winona Daily New, would set the record staight once and for all. I lived on a flood plain in Rochester, Flood insurance is not only expensive, but it only covers the cement block walls, furnace, and water heater. The Rest is Not covered. Flood insurance is a goverment joke. "

    Is it Entitlement? wrote on Aug 29, 2007 1:58 PM:

    " I just don't understand the mentality of some people that believe that "The Government" (in other words, You and I) OWES them! While I have compassion for people that have suffered losses, and that we as a country should help each other out in tough times, I do not believe in "entitlement". Have the children of the baby boomer's become so reliant on being "taken care of" that they don't know how to get on their own two feet? "

    upset wrote on Aug 29, 2007 1:33 PM:

    " So you are saying that if you were not damaged by the flood, the government does not owe us? Why should they assume that is worth all that $$$????? It is too bad that he lost his collection, but he still has his life. Some do NOT! I have been out there helping & seeing it first hand. I was fortunate, but still flood insurance wouldn't cover it all. In the areas that a few of us live in we are not able to because of the flood plain (like myself). Check your facts on insurance. "

    Kevin H wrote on Aug 29, 2007 1:21 PM:

    " I don't own a $ 200,000 collection of anything. I don't own a $ 300,000 house. I don't own a 2 unit apartment complex. I don't own a greenhouse business. Why highlight someone who had a lot to lose? It's the people who were just getting by that are hurt the most. I assure you, I have done more than my fair share to help flood victims. I note that many of you assumed that I have not. btw, it is a misconception that "only people living in a flood plain can get flood insurance." Anyone who's community is registered with the program can. Seeing as how Rushford has a flood protection system in place, I would guess that they are. Perhaps whoever wrote that needs to get THEIR facts straight. "

    Lynette wrote on Aug 29, 2007 1:09 PM:

    " I have a lot of sympathy for Mr. Colbenson, unless he votes Republican. The Republicans are not to blame for the flood, of course, but they are using our taxpayer money for the disaster in Iraq. In the meantime, while regular people are paying for the war, the rich are getting huge tax cuts. I don't make enough money to get by and I owed taxes. I would be very surprised if there was any federal money to help these people. People who vote Republican are often going on and on about working hard and taking care of yourself. If Mr. Colbenson has been saying that in the past in reference to other people, we should say that about him now. If not, then I wish I could help him, but I have no savings or any way to help him because I paid in this year for taxes. "

    Here's The Solution wrote on Aug 29, 2007 11:05 AM:

    " The taxpayers should have to buy all of these people brand new homes, brand new cars, brand new plasma TV's, brand new appliances, brand new everything. Why? Because the government OWES them. The taxpayers should also have to write a check to Mr. Colbensen for $200,000 for his baseball card collection. If the government does all that, guess what? People would still say it's not enough. "

    Hey Marissa wrote on Aug 29, 2007 11:00 AM:

    " The phrase "Get A Life" went out of style 15 years ago. "

    Don't rebuild wrote on Aug 29, 2007 10:18 AM:

    " The area in Hokah by the Junction Inn has always had problems with flooding. Businesses should rebuild elsewhere. "

    Kevin assumes things wrote on Aug 29, 2007 10:11 AM:

    " He made a similar assumption recently in a response to me. Someone else provided information indicating that he was incorrect. He never responded - just like this nation's President doesn't respond when faced with the truths about his actions - and inactions. Keep reading Kevin's comments and you'll soon recognize the theme - assumptions. "

    Marissa Keller wrote on Aug 29, 2007 9:43 AM:

    " I agree, have some empathy Kevin H. !! If this story was about you and your horrific loss, I wonder if you would be shooting your mouth off in the same fashion...?? Just because someone has a collection of something and it is worth money, does not mean they are wealthy? What do you collect? Maybe you could sell it to afford to GET A LIFE!! "

    wrote on Aug 29, 2007 9:24 AM:

    " To Kevin and anyone wondering The Rushford residents could not even get flood insurance as the dike was to protect them from the flood-it is the creek that went over-the dike held in the water-which in this case-is what hurt my parents home and others in Brooklyn. You need to get your facts straight- and don't jump to any conclusions-good thing you didn't write out your whole name as the Colbenson's I am sure would contact you to assist them in getting the 6 inches of mud out from their home-think before you react-you should be a volunteer to get some impathy for the residents which were hit by this horrific incident. "

    not a good ratio... wrote on Aug 29, 2007 9:19 AM:

    " the average amount that FEMA applicants get is just over $700 each? - that's too bad... "

    Don't wait for Bush to help you wrote on Aug 29, 2007 8:25 AM:

    " The Bush Administration still thinks they're doing a great job in the Gulf Coast region, two years after Katrina. Ha. Read the stories currently circulating in the media. Nobody here in the Midwest should rely on any Federal agency for assistance, at least not any time soon. Bush is too busy asking for another $50 BILLION for Iraq to care about anyone in this country - the very "freedom loving" people he claims to work for. We'll have to help each other. Volunteer today. "

    Brian G wrote on Aug 29, 2007 8:18 AM:

    " Is this a case of people affording flood insurance or just not choosing to have it? I lived on the North Side of La crosse and we were FORCED to have flood insurance because we lived on a flood plain. More then likely we will not see something like this in our lifetime again. However, flood insurance i am sure will be mandated in the areas affected. "

    To 7:40 AM wrote on Aug 29, 2007 8:11 AM:

    " The phrase "get a life" went out of style about 15 years ago. "

    Jessie wrote on Aug 29, 2007 8:10 AM:

    " Kevin H. I assume if you are well off enough to own a computer you could have invested in Yahoo when it was first started and made millions = there are those who could not. "

    to Kevin H wrote on Aug 29, 2007 7:40 AM:

    " He could have had the card collection since being a young kid. Having a collection of anything worth a lot of money does not mean a person is wealthy...get a life! "

    Kevin H wrote on Aug 29, 2007 12:11 AM:

    " This article didn't indicate one way or the other, but if Mr. Colbensen had a $ 200,000 baseball card collection, he obviously could have afforded flood insurance. Most people in this area can't. "


    The comments above are from readers. In no way do they represent the views of the Winona Daily News.

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