SBA Disaster Loans: Available To Texas Homeowners, Renters, Business Owners And Nonprofit Organizations
Release Date: September 25, 2008
Release Number: 1791-042
» More Information on Texas Hurricane Ike
AUSTIN, Texas -- Federal grants are only one form of disaster assistance available to Texas residents recovering from Hurricane Ike. In fact, the bulk of disaster repair and replacement funds come from loans provided by the U.S. Small Business Administration (SBA).
Homeowners, renters, business owners and nonprofit organizations alike can take advantage of the low-interest disaster loans to cover costs not fully funded by insurance or other sources. Interest rates are as low as 2.875 percent for home loans and 4 percent for business loans. Refinancing and relocation may be available in certain situations.
With help from the SBA
- Homeowners may borrow up to $200,000 to repair or replace their primary residence.
- Homeowners and renters may borrow up to $40,000 to replace personal property.
- Businesses may borrow up to $2 million for any combination of the following:
- Loans to repair damage to real estate, machinery, equipment and inventory.
- Economic injury loans to help provide working capital to recover from the disaster's economic impact.
Actual loan amounts and terms are determined by the SBA and based on each applicant's financial situation. Applicants should apply for SBA loans before insurance or other assistance is final.
Potential SBA loan applicants must begin by registering with FEMA. Homeowners, renters, businesses of all sizes and nonprofit organizations can register online anytime at www.fema.gov, or by calling 1-800-621-FEMA (3362), (TTY 1-800-462-7585). These toll-free telephone numbers will operate 24 hours a day, seven days a week until further notice.
Homeowners and renters who receive an SBA disaster loan application after registering with FEMA should complete and return it to the SBA - even if they aren't sure they will need or want a loan. Returning the application is necessary to be considered for some forms of FEMA assistance, such as damage to personal property.
SBA specialists are working at the federal-state Disaster Recovery Centers that are operating throughout affected areas. At the centers, SBA specialists can answer questions regarding the SBA loan process, help residents fill out applications for low-interest disaster loans, and accept completed forms.
For more information, call the SBA Customer Service Center at 1-800-659-2955 or visit the SBA Disaster Preparedness Web site at www.sba.gov/services/disasterassistance.
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 terror.
Last Modified: Thursday, 25-Sep-2008 14:15:48