Return SBA Applications 

Release Date: October 6, 2004
Release Number: 1558-035

» More Information on West Virginia Severe Storms, Flooding and Landslides

CHARLESTON, W. Va. — People who receive U.S. Small Business Administration low-interest disaster loan applications for Hurricane Ivan damages should return the applications promptly, even if they don’t want a loan. Assistance may be available from FEMA’s Other Needs Assistance program if an applicant does not qualify for an SBA loan. In such cases, FEMA can consider direct assistance in the form of disaster grants.

SBA loan applications are usually included in the packet people receive by mail after registering for disaster assistance at FEMA’s toll-free number – 1-800-621-3362.

“The applications are a bridge to other possible assistance,” Lou Botta, federal coordinating officer, Federal Emergency Management Agency (FEMA), said. “If the SBA cannot offer a loan, the individual will be referred to other available disaster assistance programs.”

Should applicants be expecting pending insurance settlements, they should file with the SBA anyway, because insurance settlements can take longer to process than a loan. And home- or business-owners can use insurance settlements to pay off loan balances. There are no penalties for early repayment of SBA loans.

“Filing an application in no way obligates the applicant to accept a loan,” Steve Kappa, state coordinating officer, West Virginia Office of Emergency Services, said. “We are urging anyone who has sustained losses because of Ivan to file as soon as possible.”

SBA disaster loans cover uninsured or underinsured disaster losses. Interest rates can be as low as 3.187 percent for homeowners and 2.9 percent for businesses. Because the circumstances of applicants differ, the repayment terms, including interest rate, monthly payment and maturity, are determined on a case-by-case basis. The maximum loan term is 30 years.

Applications are available at FEMA’s Disaster Recovery Centers. For more information on SBA loans, people can visit www.SBA.gov/disaster.

On March 1, 2003, FEMA became part of the U.S. Department of Homeland Security. FEMA's continuing mission within the new department is to lead the effort to prepare the nation for all hazards and effectively manage federal response and recovery efforts following any national incident. FEMA also initiates proactive mitigation activities, trains first responders, and manages the National Flood Insurance Program and the U.S. Fire Administration.

Last Modified: Wednesday, 06-Oct-2004 08:55:14