March 11 SBA Loan Application Deadline Approaches
Loans Are Primary Funding Source for Individual Disaster Recovery
Release Date: March 3, 2006
Release Number: 1606-150
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AUSTIN, Texas -- In just over five months, the U. S. Small Business Administration (SBA) has approved more than $113.3 million in disaster loans to residents and business owners in the State of Texas. The loans are the primary funding source for long-term recovery assistance for residents affected by the recent disasters.
As the March 11, 2006, deadline for submitting loan applications approaches, SBA is contacting Hurricane Katrina and Rita applicants urging them to complete and return loan applications as soon as possible. The Department of Homeland Security's Federal Emergency Management Agency (FEMA) and the State of Texas are emphasizing the importance of completing an SBA loan application, which will ensure applicants consideration for a range of government assistance for the long term.
Many FEMA benefits become available only if an SBA application is submitted. Eligibility determinations for applicants requesting FEMA's temporary housing assistance will not be delayed because an applicant has or has not filled out an SBA loan application, or has filled out such an application incorrectly. FEMA will process applications for housing assistance regardless of whether the applicant has applied for an SBA loan.
By completing an SBA loan application, an applicant may become eligible for consideration for assistance under the FEMA Other Needs Assistance (ONA) program that covers personal property, vehicle repair or replacement, and moving and storage expenses. In addition, other ONA grants, such as medical and dental expenses, and funeral and burial expenses, do not require individuals to apply for an SBA loan to be eligible.
"We want residents to be mindful that they do not have to be small business owners to access the SBA loan program," said Federal Coordinating Officer Sandy Coachman, FEMA's top official for disaster recovery operations in Texas. "SBA provides low-interest disaster loans to qualified homeowners, renters and some nonprofit organizations, as well as to businesses of any size. The common thread is that they have suffered damage and losses due to disasters."
In the wake of hurricanes, floods, earthquakes, wildfires and tornadoes, SBA helps by providing loans to:
- Homeowners to repair or replace disaster damages to real estate
- Homeowners and renters to help replace personal property losses
- Businesses to repair or replace disaster damage to property, including real estate machinery and equipment, inventory and supplies
- Non-profits for similar physical businesses losses
- Small businesses for working capital to assist through the disaster-recovery period.
SBA loans are designed for those disaster victims who are either uninsured or are not fully covered by insurance. Interest rates can be as low as 2.687 percent for homeowners and renters, and 4.0 percent for businesses, with terms up to 30 years.
Individuals should register for disaster assistance by call the FEMA toll-free number, 1-800-621-FEMA(3362) or TTY 1-800-462-7585 for the speech- or hearing-impaired.
For additional information about how to complete the SBA loan application or for more information on SBA loan assistance, call the SBA Helpline at 1-800-659-2955; or visit www.sba.gov/disaster.
FEMA manages federal response and recovery efforts following any national incident. FEMA also initiates mitigation activities, works with state and local emergency managers, and manages the National Flood Insurance Program. FEMA became part of the U.S. Department of Homeland Security on March 1, 2003.
Last Modified: Thursday, 18-May-2006 08:55:17