FARGO (AP) - President Bush designated the town of Northwood a disaster area on Friday because of a tornado that damaged most buildings in the town, Sen. Kent Conrad said.

The designation will allow state and local governments in the area to recover some of the costs of emergency aid and help rebuilding efforts.

"We continue to press for individual assistance," Conrad said, but "we're certainly grateful for this determination on public assistance."

The Federal Emergency Management Agency says assistance for homeowners would not fill the gaps for many underinsured homeowners in tornado-ravaged Northwood.

Members of North Dakota's congressional delegation have been pushing FEMA to grant individual assistance for residents, saying most homeowners do not have enough insurance to cover the cost of rebuilding.

But FEMA help "certainly isn't, in a lot of cases, going to return your house to a pre-disaster state," said Derek Jensen, an agency spokesman.

The Aug. 26 tornado, which killed one man and injured 18 other people, destroyed, damaged or affected all but 29 of Northwood's residences, the Red Cross said.

Jensen said individual assistance from FEMA is intended to provide people with a place to live while their homes are being fixed. The maximum a household could receive is $28,200. That amount would include rental assistance, temporary housing and some repairs or replacement of certain property, he said.

"Our programs are not designed to make people whole," Jensen said. "The idea is to give them a safe, secure place to live so they can get started on their road to recovery."

"Anything that will help close that gap could be the difference between people rebuilding their lives in Northwood and going elsewhere," Conrad said.

If individual FEMA aid is approved, assistance from the Small Business Administration would kick in, said spokesman Mark Randle. SBA assistance includes low-interest loans for homeowners, renters, businesses and nonprofits for uninsured or uncompensated property damage, he said.

Meanwhile, Attorney General Wayne Stenehjem and Secretary of State Al Jaeger are cautioning Northwood residents to be wary of unlicensed contractors that might try to scam homeowners. Residents can call 701-328-2900 to verify a contractor's license.

City Administrator Marcy Douglas said one of the city's two bars reopened Wednesday and other businesses plan to reopen in the coming days.