SBA Urges Loan Application Return For Further Assistance
Release Date: October 1, 2004
Release Number: 1546-029
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ASHEVILLE, N.C. -- Many North Carolina victims of the severe weather that occurred from Tropical Storm Frances or Hurricane Ivan have called the Federal Emergency Management Agency (FEMA) at
1-800-621-FEMA (3362) to register for disaster assistance and, afterwards, received a loan application from the U.S. Small Business Administration (SBA).
Disaster recovery officials are urging North Carolina residents who’ve applied for disaster help and have received a U.S. Small Business Administration (SBA) loan application to fill it out and return it as quickly as possible. The processing of some forms of disaster assistance—such as loans and certain grant referrals—stops until the completed packet is returned. If you don’t return the packet, you are shutting off that further assistance without even learning what it might be.
“SBA disaster loans are the primary source of long-term recovery assistance. The loan application provides necessary information for determining the appropriate assistance for each applicant. If the SBA is unable to approve a loan, the applicant may be automatically referred to other disaster assistance programs,” said Justin DeMello, federal coordinating officer for the disaster recovery effort. For more information, call the
SBA Helpline at 1-800-359-2227 or visit the SBA Website at www.SBA.gov/disaster.
“We are urging anyone who sustained losses because of the storms and flooding to apply for assistance and mail in the completed SBA loan application as soon as possible,” said Dr. Kenneth Taylor, state coordinating officer of the North Carolina Department of Crime Control and Public Safety’s Division of Emergency Management.
While FEMA housing assistance is not subject to SBA loan requirements, filling out the SBA application is a necessary step to being considered for other forms of disaster assistance. SBA low-interest disaster loans are available to qualified renters, homeowners, landlords, business owners, and non-profit organizations that suffered damage or loss due to the disaster. Businesses and non-profit organizations may apply for losses not fully covered by insurance. Interest rates can be as low as 3.187 percent for homeowners and renters and 2.900 percent for businesses. Loan terms on all loans can be up to 30 years. Actual loan amounts and terms are set by the SBA and based on each applicant’s financial condition.
The SBA also makes mitigation funds available to many disaster victims who have already been approved for a low-interest disaster loan. SBA funds are designed to help borrowers by offering an increase of up to 20 percent of their approved physical loan amount to help pay for mitigation measures.
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: Friday, 01-Oct-2004 19:41:13