Federal flood aid headed to region

President Bush yesterday declared flood-stricken regions of Massachusetts, New Hampshire, and Maine as disaster areas, making homeowners and businesses eligible for grants and low-interest loans to make repairs and aid their recovery.

The declaration was made nearly two weeks after torrential rains caused area rivers to overflow, flooding cities and towns across a wide swath of Essex, Middlesex, and Suffolk counties.

``Citizens who sustained flood damage can immediately begin the application process to get federal loans or federal grants to help them get back on their feet," said Lieutenant Governor Kerry Healey. ``But we should be very clear: The amount of money that's available is limited, and we need in many cases to realize that it is not going to be adequate to get people back on their feet."

Those seeking aid can apply by phone, the Internet, or in person at state disaster offices in Amesbury, Melrose, Lawrence, Lowell, and Peabody. The Federal Emergency Management Agency will inspect the homes and businesses of applicants to determine the amount and type of assistance applicable.

State lawmakers yesterday also aggressively pushed forward on an aid package that would supplement assistance from the federal government. Legislative leaders said the package could be passed within days.

``This is only the beginning and we realize that the federal government is now involved in giving as much assistance as possible, but we do need a state response as well," said House Speaker Salvatore F. DiMasi, a Boston Democrat.

Yojanis Jimenez, owner of the SKJ record store in Lawrence, said she lost about $50,000 to the flood, which closed her store for two weeks. ``I'm desperate. This was my life. I have three kids to support and three mortgages."

Nearly 160 people sought assistance yesterday at five newly opened state disaster recovery centers, with state officials expecting a rush this weekend now that federal aid is on the way. State officials said that people should not expect windfalls.

``No one's going to get rich from these programs or come out much better than they were before the floods," said Peter Judge , a spokesman for the Massachusetts Emergency Management Agency. ``People also have to manage their expectations. These are emergency grants, so people aren't going to get their drapes replaced."

The maximum repair grant will be $5,400. ``Based on our damage estimate, most people will not need more," said FEMA spokesman Marty Bahamonde.

But state Senator Steven C. Panagiotakos , a Lowell Democrat, said that seriously damaged houses in his district would require $50,000 to $100,000 in repairs, and estimated that Lowell alone would require $30 million. He said that even with the planned state aid package on top of federal aid, many homeowners would probably struggle.

``It's not in any way going to be able to compensate you like an insurance policy," said Panagiotakos. ``There's no way we'll be able to do it. "

Under yesterday's declaration, homeowners are also eligible for low-interest loans of up to $200,000, while businesses can get up to $1.5 million. Interest rates would be about 3 percent, far below market rates, according to federal officials.

Yesterday's disaster declaration does not cover damage to local government property or infrastructure such as bridges and roads. A second declaration must be made for that to kick in, and federal officials said that will probably occur by the end of the month .

State officials said a statewide damage estimate would be released today. A previous count by local officials found 14,000 homes in 44 communities had been affected by flooding.

In Lawrence, residents and business owners had been anxiously awaiting yesterday's announcement.

Keny Arias , 25, helped friends cart away soiled clothes and furniture from their inundated home.

``They lost everything," he said. ``They're sleeping on the floor."

Juliana Aquino , 24, tried to get into her Myrtle Street apartment, but the acrid smell of dirty water stopped her at the door. She worried that the rush for federal aid would limit its availability.

``With so many people [applying], I don't know if I'll get a place," said Aquino, the mother of a 3-year-old . ``I'm not optimistic."

Russell Nichols of the Globe staff contributed to this report.