AUGUSTA (AP) – President Bush signed a federal disaster declaration Friday for assistance in Aroostook County, where hundreds of homes were destroyed or damaged and as many as 1,000 people were displaced due to a historic flood of the St. John River last week.

The declaration makes federal assistance available for temporary housing, repairs and disaster-related expenses not covered by insurance or other assistance programs. Teams from the Federal Emergency Management Agency have been in the state making damage assessments.

Gov. John Baldacci and members of the state’s congressional delegation announced the declaration. In his letter to Bush seeking a disaster declaration, Baldacci estimated that more than 200 homes were damaged and that as many as 1,000 people were displaced from their homes.

Baldacci said it’s important to apply for assistance even if insurance claims are pending.

“The only way to know for sure if they qualify for assistance is to apply,” the governor said.

Assistance for individuals will be in the form of grants or low-interest Small Business Administration loans. SBA loans for uninsured damage or economic injury are available to businesses, Baldacci said.

An aerial estimate last weekend indicated more than 400 structures likely sustained damage. The flood also damaged many roads and bridges in the area.

Sen. Susan Collins, R-Maine, a native of Aroostook County, said, “I have not ever seen such extraordinary damage to so many homes, buildings and infrastructure in our state.”

Sen. Olympia Snowe, R-Maine, called the federal disaster declaration “a critical component of the recovery and rebuilding process.”

Officials said several other programs will be available to county residents whose homes were destroyed or damaged by the flood.

The Maine State Housing Authority is offering low-interest loans to repair or replace homes.

Authority Director Dale McCormick said repair loans of up to $20,000 at a 3 percent annual rate are being offered. For home replacement loans, eligibility requirements are the same as in MaineHousing’s first-time home buyer program.

McCormick said Aroostook residents whose homes need repairs or replacement should check with the Savings Bank of Maine or call MaineHousing to see if they qualify for a disaster relief loan. McCormick said the agency is working with local lenders to accept home repair or replacement applications.

The Finance Authority of Maine has approved two programs to aid businesses in designated disaster areas that have been affected by recent excessive rain, snow melt and flooding.

The Department of Professional and Financial Regulation on Friday said it is encouraging all banks and credit unions, as well as mortgage companies and other creditors, to work cooperatively with residents impacted by recent severe weather and flooding.

Department officials said some people affected by the floods may not be able to meet their financial commitments.

Lloyd LaFountain III, superintendent of the Bureau of Financial Institutions, said that because mortgage, auto, credit card and other payments may be impacted, “lenders are asked to be understanding and cooperative, while consumers are encouraged to make their circumstances known to their creditors as soon as possible.”

State banking and consumer credit protection officials will be available to help consumers who need to contact lenders to revise payment schedules or discuss other actions that might ease their financial burden.