Complete And Return Your SBA Loan Application
Release Date: February 9, 2006
Release Number: 1604-239
» More Information on Mississippi Hurricane Katrina
BILOXI, Miss. -- Mississippi residents affected by Hurricane Katrina are urged to complete and return their U.S. Small Business Administration (SBA) disaster loan applications to be eligible for all types of available federal and state disaster assistance.
Applicants seeking federal temporary housing aid do not need to complete a loan application to be considered for housing assistance provided by the Federal Emergency Management Agency (FEMA). However, applicants who have received an SBA loan application need to complete and return the application to ensure they are considered for other types of available aid.
“Families shouldn’t wait on other grant programs or an insurance settlement before submitting their SBA loan application,” said Mike Womack, state coordinating officer for the Mississippi Emergency Management Agency. “Submission of an application does not require that you accept the loan even if approved.”
As the March 11, 2006, deadline for SBA applications approaches, the SBA is contacting every household that has not yet returned their SBA disaster loan application to inform them it is imperative they complete and return their loan applications as soon as possible.
Applicants in Mississippi have been approved for more than $1.4 billion in SBA disaster assistance loans. The SBA provides low-interest disaster loans to qualified homeowners, renters, landlords, certain private non-profit organizations and businesses of any size that sustained losses due to Hurricane Katrina. These loans are designed for people affected by the disaster who are either uninsured or not fully covered by insurance.
“The SBA Disaster Assistance program offers Mississippi homeowners another resource to aid in their recovery,” said Nick Russo, federal coordinating officer for disaster recovery efforts in Mississippi. “The low interest rates and long terms available from SBA make recovery affordable.”
An applicant must complete an SBA loan application to be eligible for assistance under the FEMA-state Other Needs Assistance (ONA) program that covers personal property, vehicle repair or replacement, and moving and storage expenses. Even so, applicants who do not meet a certain income threshold may be excused from this requirement. In addition, there are other ONA grants such as medical and dental expenses, and funeral and burial expenses that do not require individuals to apply for an SBA loan to be eligible. More than 120,000 Mississippi households have received nearly $294 million in ONA funds.
FEMA’s temporary housing assistance is available to applicants displaced from their pre-disaster primary residence or whose residence has been rendered uninhabitable as a direct result of Hurricane Katrina. Assistance is contingent on an applicant’s insurance coverage and whether it provides for housing needs. But in no case is an SBA loan application required for temporary housing assistance.
Eligibility determinations for applicants requesting FEMA’s temporary housing assistance will not be delayed because the applicant has or has not filled out an SBA loan application, or has filled out such an application incorrectly. FEMA will process applications for housing assistance regardless of whether the applicant has applied for an SBA loan.
To date, FEMA has provided more than $1.08 billion in housing or financial assistance to individuals and households affected by Hurricane Katrina with more than 515,000 Mississippians receiving FEMA assistance. Also, nearly 365,000 Mississippi households have received either rental assistance to lease an apartment or home or have received direct housing assistance, such as travel trailers or mobile homes.
Mississippians affected by Hurricane Katrina who have not already registered for FEMA assistance are encouraged to call 1-800-621-FEMA (3362) or (TTY) 1-800-462-7585 for speech- or hearing-impaired or access the FEMA website at www.fema.gov. The deadline for new applications through FEMA’s Individual and Households Program is March 11, 2006. The agency’s call centers continue to operate 24 hours a day, seven days a week.
FEMA manages federal response and recovery efforts following any national incident. FEMA also initiates mitigation activities, works with state and local emergency managers, and manages the National Flood Insurance Program. FEMA became part of the U.S. Department of Homeland Security on March 1, 2003.
Last Modified: Thursday, 09-Feb-2006 17:10:34