By Charles Layton
Second homes — such as many people own in Ocean Grove and other shore towns — are NOT eligible for low-interest loans under Small Business Administration disaster aid. Blogfinger had reported otherwise in a previous article, but that report was in error.
The SBA’s website (click here) says explicitly that secondary homes or vacation homes are not eligible for disaster loans “as homes. They may be eligible for business disaster loans under certain conditions.”
Robin Smith, a Federal Emergency Management Agency public information officer, explained those conditions to Blogfinger on Monday. She said that if a person owns a second home, rents it out and declares the income on federal taxes, then it is possible that the home could qualify as a business. In that case, the owner might possibly be eligible for a Small Business Administration low-interest disaster loan, although the owner would have to qualify under a fairly low income ceiling. “Most people who own a second home probably wouldn’t qualify,” Smith said.
For information about all kinds of federal disaster aid, go to http://www.fema.gov. People needing help should also know that FEMA has just opened a disaster recovery center in Belmar at 601 Main Street. As we understand it, you can go there, walk right in and speak with a FEMA official.
Bythesea coudn’t have said it better. John Galt wouldn’t ask for assistance but he wouldn’t have paid exorbitant taxes for wealth resdistribution either. What Bythesea is saying is that the people who pay all the taxes are the ones who benefit the least from them. It’s pretty Ironic.
Thank you Bythesea, for speaking the truth. It’s refreshing, as I am a person exactly like you describe above. My family worked hard and saved for over 20 years to get a beach cottage, despite paying more than our fair share of taxes all along the way and playing by the rules that we didn’t make. People like us aren’t eligible for the government safety nets that we provide to others.
FEMA assistance is to supplement insurance, where insurance doesn’t cover. So you can and are ordinarily required (by your mortgagee) to purchase insurance but if it doesn’t cover particular losses, FEMA assistance can be available. I agree with Bythesea, that FEMA assistance should not be foreclosed simply because it is a second home.
I do believe that is why homeowners need to purchase insurance
I believe John Galt is a guy who wouldn’t ask for government intervention in the first place.
Just sayin’.
While I’m very sympathetic to the above comment, let’s face it, America just voted decisively in support of the notion that Government’s role is to redistribute money from “wealthier” people to “poorer” people. I just hope FEMA helps to replenish/rebuild the beach area.
As usual it looks like the government is out to disadvantage responsible people. Most second home owners in Ocean Grove are not rich people. Instead they are modestly successful people who have lived responsible lives and saved their money up to buy a small home at the beach. It is exactly these responsible people — who pay high taxes and subsidize less responsible people — who get nothing in return.
FEMA aid should apply to all who were affected. Second home owners suffered the same economic loses as primary home owners and they should get the same benefits.
Who is John Galt?