Berks County Flood Recovery: SBA Loans and Shapiro Aid Program for Homeowners

Flash Flooding Hits Berks County

Severe storms and flash flooding in July 2023 caused significant damage to homes, businesses, roads, and infrastructure across Berks County, Pennsylvania — particularly in Lower Alsace Township and surrounding communities. Many residents faced uninsured losses, with flood insurance penetration low in the affected areas.

In the aftermath, Governor Josh Shapiro visited Lower Alsace Township to pledge state support and directed multiple state agencies — including PEMA, PennDOT, and the Department of Education — to coordinate response and recovery.

SBA Disaster Declaration Secured

Working with PEMA and Berks County, the Shapiro administration submitted a request to the U.S. Small Business Administration (SBA) for a disaster declaration. On October 2, 2023, the SBA announced an administrative disaster declaration for Berks County, opening up federal disaster loans for affected households and businesses.

Residents in the contiguous counties of Chester, Lancaster, Lebanon, Lehigh, Montgomery, and Schuylkill were also made eligible for certain SBA disaster loan programs.

What SBA Loans Cover

The SBA disaster loan program for Berks County included:

• Home Disaster Loans for homeowners and renters to repair or replace disaster-damaged real estate, personal property, vehicles, appliances, and clothing.
• Business Physical Disaster Loans for businesses of any size and most private nonprofits to repair or replace damaged property.
• Economic Injury Disaster Loans (EIDLs) for small businesses, small agricultural cooperatives, and eligible nonprofits, providing working capital to cover obligations they could have met had the disaster not occurred — up to $2 million.

SBA disaster loans carry low, fixed interest rates and long repayment terms. Rates and terms vary by applicant type and ability to obtain credit elsewhere.

In-Person Help in Reading

To help residents navigate the loan process, the SBA opened a Disaster Loan Outreach Center (DLOC) at Albright College's Roessner Hall in Reading. The center allowed Berks County homeowners and business owners to meet face-to-face with SBA specialists to understand eligibility, gather required documents, and submit applications.

Governor Shapiro's Broader Response

In addition to securing the federal declaration, Governor Shapiro's administration took several state-level steps:

• PennDOT crews worked to reopen damaged roads and bridges.
• A multi-agency resource center was set up in Berks County to connect residents with state, federal, and nonprofit assistance in one location.
• The Pennsylvania Department of Education coordinated with the Antietam School District, one of the hardest-hit areas, to maintain academic standards despite facility damage.
• State funding sources were explored to help fill gaps that SBA loans alone could not cover.

Key Takeaways for Homeowners in Disaster Recovery

For homeowners dealing with flood damage — in Berks County or anywhere — the SBA disaster loan program remains one of the most important tools available when FEMA Individual Assistance is not declared. A few practical notes:

• SBA disaster loans are not only for businesses; homeowners and renters are specifically eligible.
• There is no cost to apply, and homeowners who are approved can decide later whether to accept the loan.
• Loans are a repayable form of aid, not grants — though terms are typically much more favorable than private loans.
• Applying early is important; deadlines for physical and economic injury loans differ and can close quickly.

Why This Declaration Mattered

Because the July 2023 Berks County flooding did not receive a full FEMA major disaster declaration with Individual Assistance, SBA disaster loans were the primary federal tool available to homeowners. The Shapiro administration's push to secure that declaration, plus the state-level response, represented a critical lifeline for families facing repair bills that insurance wouldn't cover.