SBA Disaster Loans - Not Just For Businesses
Release Date: June 3, 2008
Release Number: 1758-022
» More Information on Arkansas Severe Storms, Flooding, and Tornadoes
LITTLE ROCK, Ark. -- The Federal Emergency Management Agency (FEMA) and the Arkansas Department of Emergency Management want to remind those who suffered damages, from the severe storms, flooding and tornadoes that began on May 2, loans from the U.S. Small Business Administration (SBA) are not just for businesses. The low-interest loans are also available for residents in the disaster-designated counties of Arkansas, Benton, Cleburne, Conway, Crittenden, Grant, Lonoke, Mississippi, Phillips, Pulaski, Saline and Van Buren.
Many homeowners and renters who register for disaster assistance with FEMA will be referred to the U.S. Small Business Administration (SBA) for assistance in the form of a low-interest disaster loan. SBA is the federal government's primary source of money for the long-term repair or rebuilding of disaster-damaged private property that is not fully covered by insurance.
If you receive an SBA loan application and need help filling it out, you can meet with an SBA Customer Service Representative at a local Disaster Recovery Center. These representatives are on hand to answer questions about SBA's disaster loan program, explain the application process, and help each individual complete their application. If you can't visit a DRC and need help, you can call SBA at 800-659-2955 or get additional information online at www.sba.gov/services/disasterassistance.
"It is important that those who receive an SBA application fill it out and return it as quickly as possible, even if they are not interested in a loan," said Federal Coordinating Officer Ken Riley. "Individuals who do not qualify for SBA loans may be referred to other available disaster aid programs and filing an application doesn't obligate anyone to accept a loan."
Failure to complete the SBA loan application may stop the process of determining eligibility for other types of disaster assistance including FEMA grants.
SBA offers disaster loans up to $200,000 to homeowners to repair or replace damaged or destroyed real property. Homeowners and renters are eligible to borrow up to $40,000 to repair or replace damaged or destroyed personal property. Interest rates can be as low as 2.875 percent for homeowners and renters and maximum terms can be for as long as 30 years.
FEMA coordinates the federal government's role in preparing for, preventing, mitigating the effects of, responding to, and recovering from all domestic disasters, whether natural or man-made, including acts of terrorism.
Last Modified: Thursday, 05-Jun-2008 10:08:42