"We're telling people, apply and find out what the SBA can do," said William Koontz, communications specialist with the SBA Office of Disaster Assistance, who was on Maui on Friday to begin setting up a disaster assistance center.

The ODA has not yet determined where it will be able to set up a Disaster Loan Outreach Center but has designated when it will open – Thursday. Koontz said one of the difficulties is that there are two distinct regions that have suffered losses, in South Maui and the Keokea-Waiohuli area, but the assistance center can't be in both.

"As soon as we know where we can open, we will announce where the center will be located," he said.

Victims of the flooding and severe winds should be assured that the center "will be open as long as it's needed," he said. He anticipated that a center on Maui will need to be open for at least two to three weeks to accommodate the families and business owners who have suffered losses.

The disaster loans program will be available to most victims of the storm, with loans of as much as $200,000 for a homeowner who needs to repair or replace a primary residence, and loans of up to $40,000 for homeowners and renters for damaged or lost property. Businesses can borrow up to $1.5 million to repair or replace damaged property, to replace inventory or to replace or repair equipment.

There also are loans available to assist a business owner in making improvements to prevent damage from future natural disasters.

Koontz said some victims may be waiting to resolve insurance claims and said the loan program is intended to supplement any payments made by insurance. But he also said most insurance claims may not be cleared for months, while the ODA loans can be provided as quickly as the applications are approved. There is also a Feb. 18 deadline to file for property damage and a Sept. 19 deadline to file for economic losses.

"We're only allowed to provide loans for damages that are uncompensated," he said. "But we can provide the funds and if the loss is insured, you can repay the SBA for the loan."

Many of the houses damaged during the storm will not be insured for flood, which is a type of loss not covered in most homeowners' insurance policies. For those homeowners, ODA loans may be the only help they can get to recover losses from flood damage.

Koontz said Gov. Linda Lingle declared O'ahu and Maui to be disaster zones and applied for SBA assistance as soon as it was clear that damage from the Kona storm did not hit the loss threshold for Federal Emergency Management Administration assistance.

"The same day she asked, we said yes," he said.

He said loans will be available for most businesses, including those that suffered economic losses because of the power outages that struck South Maui and Upcountry, including loss of business activity because the shops couldn't open and loss of inventory from spoilage.

"Even if you're not sure you need a loan, we encourage people to come in and apply. If you find out it is appropriate, at least you will have the paperwork in and you can go through the SBA process," he said.