First, President Bush's disaster declaration excluded them from Federal Emergency Management Agency grants and rent subsidies. Now, it seems, private property owners won't qualify for low-interest loans from the Small Business Administration either.

"It appears we didn't make the threshold," said Derek Jensen, spokesman for the Utah Department of Emergency Services and Homeland Security, which applied for the SBA assistance.

To secure the low-interest loans, Jensen explained, at least 25 primary residences needed uninsured damage equal to 40 percent of their fair market value when the rain-swollen Santa Clara and Virgin rivers overflowed their banks last month.

"We came close but were a few homes short," Jensen said.

In the end, 28 homes in St. George and nearby Santa Clara either were swallowed by the Santa Clara River or damaged beyond repair. Another 24 will need extensive repairs.

But not all of the houses in this retirement haven were primary residences.

"Some of those homes were secondary homes and would not qualify under SBA rules," Jensen said. "There's a threshold established by law that we have to follow."

Ernest Webb, who lost 80 percent of his house to the surging Santa Clara and must raze the remainder, was not surprised to learn that homeowners may be shut off from the SBA loans.

"As far as we can see, it's up to the community to help now," Webb said. "We're just going to have to try and be positive."

Some help could come from a private, nonprofit corporation - sanctioned by St. George - that hopes to raise at least $3 million for private flood relief. Officials also are exploring the possibility of making another run at SBA assistance by combining the private damage in Washington County with the losses that took place downstream in Arizona.

The floods that soaked the region Jan. 8-12 wiped out homes, roads, bridges and pipelines. Washington County suffered an estimated $150 million to $180 million in damage and - along with neighboring Kane County - was declared a federal disaster area.

That designation opened the door to FEMA to help rebuild public infrastructure.

On Monday, FEMA officials met with county and city officials in St. George and explained how they can go about tapping the stream of federal aid. FEMA will pay 75 percent of eligible costs with the state and local entities footing the rest.

State officials also discussed how the cities and Washington County can secure loans from the $25 million appropriated by the Legislature for emergency flood relief.

"The $25 million isn't a lot, but it's a step in the right direction," said Lt. Gov. Gary Herbert, who attended Monday's gathering.

"There's a finite amount of money so we need to manage it together to get the most bang for the buck."

The state money will be loaned to the county - then funneled to the cities - and will help meet FEMA's 25 percent match.

Also on Monday, Washington County signed a contract with the Natural Resources Conservation Service to begin accepting bids to restore eroded riverbanks.

The NRCS estimates it will need $60 million for the project; $6 million has been released so far.

mhavnes@sltrib.com