Washington County has been declared a disaster area by the Small Business Administration because of the Jan. 1 failure of the Quail Creek Dike and subsequent flooding, meaning eligible people can get low-interest loans to repair or replace their damaged uninsured or underinsured property.

William H. Hanson, SBA acting director in Utah, said SBA is offering low-interest loans to homeowners, tenants and business owners to repair or replace their property damaged in the flood. People in Iron and Kane counties, because they are contiguous to Washington County, may also be eligible for the loans.Loans are available to homeowners for up to $100,000 to repair or replace damaged or destroyed real property and up to $20,000 to repair or replace damaged or destroyed personal property. Tenants are eligible for personal property loans only.

Business owners may qualify for up to $500,000 to repair or replace damaged or destroyed real property, machinery, equipment or inventory.

Small business owners also may qualify for economic injury disaster loans to offset working capital shortfalls that are directly attributable to the disaster. Only small businesses determined by SBA to be unable to obtain the necessary funds from non-federal sources are eligible for the economic injury program, Hanson said.

Applications for physical damage loans must be submitted to the SBA before April 6 and applications for economic injury must be submitted before Nov. 3, 1989.

To accommodate those disaster victims interested in applying for a loan, the SBA has established a temporary office in St. George's main fire station, 53 S. 10th East. It will be open Feb. 7-11 and Feb. 13-18.