SBA Packets: The Key To Disaster Aid
Release Date: October 16, 2005
Release Number: 1606-035
» More Information on Texas Hurricane Rita
AUSTIN, Texas -- Homeowners, renters and business owners who sustained losses as a result of Hurricane Rita and applied for disaster assistance through the U.S. Department of Homeland Security's Federal Emergency Management Agency (FEMA) have to first complete a loan application from the U.S. Small Business Administration (SBA).
Even if they're not interested in a loan, the SBA loan application must be completed and returned. Individuals who do not qualify for SBA loans may be referred to other disaster assistance programs.
Those who have received an SBA loan application should know that:
- Completing an application does not guarantee the application will be approved, nor does it mean that they must accept the loan. However, if the SBA loan packet is not completed and returned, applicants might qualify for only a limited number of disaster assistance programs.
- SBA loans are the primary source of long-term recovery assistance and designed to be affordable. Interest rates are as low as 2.687 percent for homeowners and renters and 4.0 percent for businesses. These interest rates remain fixed for a term as long as 30 years. Actual loan amounts and terms are determined by the SBA and based on each applicant's financial condition.
- If the home applicant is denied a loan, they will be automatically referred to other available disaster assistance programs. Loans to businesses and non-profit organizations of up to $1.5 million are available to repair or replace damage to real estate, machinery, and equipment and inventory. Economic Injury loans also are available to businesses.
- SBA disaster loans cover uninsured or underinsured disaster losses. Under the program, SBA offers loans of up to $200,000 to repair disaster-damaged primary residences. Homeowners and renters are eligible for up to $40,000 to replace personal property such as clothing, furniture and automobiles.
At a Disaster Recovery Center, SBA loan officers are available to help fill out loan applications. People who need additional information regarding other disaster assistance programs are urged to call FEMA's toll-free number, 1-800-621-FEMA (3362). People with hearing- or speech-impairments may call the TTY number, 1-800-462-7585.
Other disaster assistance may include grants to help pay for temporary housing, minor home repairs and disaster-related expenses not covered by insurance or other sources.
For more information, visit SBA's Web site: http://www.sba.gov/disaster.
FEMA prepares the nation for all hazards and manages federal response and recovery efforts following any national incident. FEMA also initiates mitigation activities, trains first responders, works with state and local emergency managers, and manages the National Flood Insurance Program and the U.S. Fire Administration. FEMA became part of the U.S. Department of Homeland Security on March 1, 2003.
Editors: For more information on Texas disaster recovery, visit www.fema.gov or www.txdps.state.tx.us/dem
Last Modified: Tuesday, 18-Oct-2005 11:27:21