Colorado Pursues SBA Recovery Funding for Aspen Acres and Gold Mountain Fires, Appeals Hazard Mitigation Grant Denial

DENVER - Today, Governor Jared Polis announced that Colorado has requested U.S. Small Business Administration (SBA) disaster assistance to help individuals, families, homeowners, renters, and businesses recover from the Aspen Acres and Gold Mountain Fires and burn scar flooding. The State has also appealed the federal denial of Hazard Mitigation Grant Program (HMGP) funding to help affected communities reduce the risk of future disaster damage. In September, the Trump Administration approved the Public Assistance (PA) portion of Colorado's Major Disaster Declaration (MDD) request and denied the Individual Assistance and HMGP funding portions.

"Today, I have submitted Colorado's request for SBA assistance and have appealed the denial of hazard mitigation funding. Doing so will allow Aspen Acres and Gold Mountain communities to access more federal resources as quickly as possible. This SBA assistance will allow homeowners, families, and businesses an opportunity to start work on home repairs and replacements, personal property damaged by the disasters, and help small businesses," said Governor Polis.

To pursue SBA assistance without further delay, Colorado will not appeal the President's denial of FEMA Individual Assistance (IA). Federal procedure prevents the SBA from declaring an independent physical disaster while a FEMA Individual Assistance appeal is active or pending because federal programs must coordinate benefit determinations, requiring Colorado to resolve that process before SBA assistance could move forward. An IA appeal could take months, with no federal deadline for the President to decide on a state's MDD appeal request. Given that uncertainty and recent delays in disaster assistance nationwide, Colorado is pursuing SBA assistance as the most reliable and immediate path to additional recovery resources for affected families and businesses.

"Losing a home to wildfire doesn't end when the fire does," U.S. Senator John Hickenlooper said. "Colorado families are still sorting through insurance claims, unsure how they'll pay for basic repairs. Every week they wait is another week they can't start rebuilding. Federal disaster loans are the fastest way to help families and local businesses move forward."

"The families and communities devastated by the Aspen Acres and Gold Mountain Fires have already endured tremendous loss. They should not have to navigate unnecessary delays and bureaucratic hurdles to get the help they need to rebuild. I support Governor Polis's efforts to secure additional federal assistance through the Small Business Administration and to appeal the denial of hazard mitigation funding. This recovery will take years, and we need to make sure our communities have the resources to rebuild safely and protect against future disasters. I will continue working with state and local leaders, regardless of party, to make sure Western and Southern Colorado are not left behind," said U.S. Congressman Jeff Hurd (CO-03).

"Some of our communities in Colorado lost everything and are still trying to rebuild after the devastating wildfires this summer. While I'm pushing for more holistic support for these families as they get back on their feet, I'm also grateful to join Governor Polis in the call to ensure our residents and small businesses have what they need to re-open their doors - especially during a year where small businesses have already been squeezed and are hurting from higher costs. These fires were just the final straw for so many business owners, and it's essential they get the support they need to move forward and rebuild," said U.S. Congresswoman Brittney Pettersen (CO-07).

"The Small Business Administration provides a wide variety of tools for homeowners, non-profits, and businesses impacted by this disaster. This decision will allow them to get on the ground quickly to start meeting with community members in order to provide financial assistance for the rebuilding and recovery process," said Trevor Denney, Director of the Colorado Office of Emergency Management.

SBA disaster assistance provides low-interest loans that must be repaid. Subject to SBA approval and individual eligibility, available assistance can include:

• Home repairs and replacement: Up to $500,000 for homeowners to repair or replace a damaged primary residence.
• Personal property: Up to $100,000 for homeowners and renters to repair or replace disaster-damaged belongings, including furniture, appliances, and vehicles.
• Business and nonprofit recovery: Up to $2 million for eligible businesses and private nonprofits to repair or replace damaged property, equipment, and inventory. Qualified rental properties may also be eligible.
• Small business operating expenses: Economic Injury Disaster Loans can provide working capital to help eligible small businesses meet expenses during recovery, even without physical property damage.

Colorado's separate HMGP appeal seeks funding for long-term efforts to reduce damage from future disasters, including flood prevention, stormwater system upgrades, and wildfire risk reduction. These investments protect communities and reduce future recovery costs. FEMA research has shown that federal grants for disaster risk reduction save an average of $6 for every $1 spent.

"Since the Aspen Acres Fire began on June 29, our residents have been waiting for a clear path to rebuild, and SBA assistance gives them one they can act on now. These are loans that must be repaid, so Pueblo County will keep pushing for every dollar of hazard mitigation funding and will stand with families as they decide what's right for them. I'm grateful to Governor Polis and our state leadership for choosing speed over an uncertain appeal and for covering 75 percent of our watershed protection local cost share," said Pueblo County Commissioner Miles Lucero.

Colorado received federal approval for PA for the Aspen Acres and Gold Mountain Fires on September 4, supporting eligible recovery work by affected communities. On September 18, the State received notice that the IA and HMGP funding had been denied, and on October 2 the Governor announced that the State would support 75% of Ouray, Pueblo, and Custer Counties cost-share for Emergency Watershed Protection efforts through the U.S. Department of Agriculture's Natural Resources Conservation Services. The HMGP appeal and pursuit of SBA assistance builds on the PA already approved.

Colorado will announce additional information about SBA assistance, eligibility, and the application process as it becomes available.

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