Prompt Return Of SBA Loan Forms Speeds Disaster Aid 

Release Date: October 18, 2002
Release Number: 1437-62

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Baton Rouge, LA -- State and federal disaster officials today advised Louisiana disaster applicants seeking financial assistance for damages and losses arising from Tropical Storm Isidore and Hurricane Lili that filling out a U. S. Small Business Administration (SBA) loan application is a required step in obtaining some forms of disaster aid.

"Housing assistance and emergency home repair grants are approved as soon as possible to get flood victims into safe, sanitary and secure housing," said State Coordinating Officer Art Jones. Jones noted that low-interest SBA loans are the largest source of disaster funds for making substantial repairs or rebuilding damaged structures.

"For that reason alone, you can see why we need to receive and process these applications as quickly as possible," said Jones.

Jones said that longer-term assistance keyed to information derived from SBA loan applications include: eligibility for the Individual and Family grant program that helps meet serious disaster-related needs and expenses not covered by insurance, as well as funding for mitigation measures designed to reduce the risk of damage caused by future disasters.

Carlos Mitchell, the federal official coordinating the disaster recovery effort said that the assistance process depended on individuals or households providing needed information. "But, if an applicant is referred to the SBA, we need to complete that part of the process before we can look at other options," Mitchell said.

Mitchell explained that filling out an SBA application does not guarantee that an applicant will be approved for a loan, nor does it mean that they must accept the loan. However, if the SBA form is not returned, applicants might qualify for only a limited number of disaster recovery assistance programs.

SBA loan officers provide face-to-face help in filling out loan forms at any of the nine fixed-site and two mobile Disaster Recovery Centers.

The officials urged everyone who suffered uninsured damages or property losses to their primary residence to register for recovery assistance at 800-621-3362 (FEMA). Speech or hearing impaired persons should call 800-462-7585 (TTY).

Last Modified: Tuesday, 22-Apr-2003 14:12:44