Banks ease loan process for storm damage

Some banks are making it a little easier for cash-strapped homeowners and businesses to borrow money to repair damage from Tropical Storm Irene, as federal banking officials had urged. They include Gold Coast Bank, Bethpage Federal Credit Union, Citizens Bank and Residential Home Funding Corp.

Gold Coast, which is headquartered in Islandia and has branches there, in Setauket and Huntington, is offering an emergency home equity line of credit program for homeowners and small businesses that promises applicants an acceptance or rejection within 72 hours. Chief executive Joseph Perri says it made special arrangements with title and appraisal companies to expedite processing. And, he notes, the federal government suspended the required three-day rescission period for borrowers to change their minds.

"We're just trying to get that money out quicker," he said. "We get goodwill, and we get more business from it."

No expiration date was given. The 10-year line of credit is offered at 3.5 percent.

Through Oct. 31 Bethpage Federal is offering homeowners "hurricane relief loans" at rates as low as 7.5 percent for $500 to $10,000, for up to 60 months, with no application fee or prepayment penalty. "Membership conditions may apply," the bank said. Bethpage has 24 branches and 60 shared locations on Long Island.

Through Sept. 30 Citizens Bank is offering unsecured emergency loans of up to $10,000 for individuals for one to seven years at 5 percent interest with no prepayment penalty, and a credit card with no interest for six months. The credit card offer also applies to small businesses.

Businesses also are eligible for "disaster bridge loans" of up to $200,000 for 90 days at 4 percent interest if they have applied for help from the U.S. Small Business Administration's Disaster Loan Assistance Program. Citizens' 27 Long Island branches are in Stop & Shop supermarkets.

Residential Home Funding, based in Parsippany, N.J., is offering expedited approval and waivers of application and closing fees for homeowners in the metropolitan area whose properties were damaged by flooding not covered by insurance. The offer is for low-interest loans backed by the U.S. Department of Housing and Urban Renewal. Eligibility is not adversely affected by a home's damaged condition.

"It doesn't matter that it needs repair," said chief executive Roberto Lupi. "The loan is based on what the future value is of the improved dwelling."

He said about 30 people have applied so far. Residential's announcement gave no expiration date. The company's website says it has branches in Bay Shore, East Islip and Syosset.

Tropical Storm Irene struck Long Island on Aug. 28.