Disaster-Damaged Rental Homes May Qualify As Businesses
Release Date: May 18, 2006
Release Number: 1636-018
» More Information on Arkansas Severe Storms and Tornadoes
LITTLE ROCK, AR -- Owners of rental properties damaged by the early April tornadoes in seven Arkansas counties may qualify for an SBA low interest disaster business loan, officials from the Department of Homeland Security’s Federal Emergency Management Agency (FEMA) and the Arkansas Department of Emergency Management (ADEM) said today.
Individuals with rental houses may not realize that they are landlords. Damaged or destroyed rental homes may be eligible for low-interest loans from the Small Business Administration’s (SBA’s) Office of Disaster Assistance to repair or replace the damaged property. These loans may be available for damaged rental properties in Conway, Cross, Fulton, Greene, Lawrence, Randolph and White counties.
The SBA’s Office of Disaster Assistance can lend up to $1.5 million per borrower for disaster losses not covered by insurance. Most loans are at 4.0% annual percentage rate (APR) and terms can be for as long as 30 years with the first payment deferred from 5 to as long as 12 months. In addition, landlords who have lost income because their rental units are unoccupied because of the tornadoes may be eligible for an economic injury disaster loan.
Applications for loans to repair or replace physical damage should be submitted by June 12, 2006, and insurance claims do not have to be settled to apply. Economic injury disaster loan applications should be submitted by January 12, 2007.
More information is available by calling the SBA Disaster Assistance Customer Service Center at 800-659-2955 (the speech- and hearing impaired may call TTY 1-817-267-4688) or by visiting the SBA website at www.sba.gov/disaster.
Those affected by the storms and tornadoes may call FEMA’s toll-free number, 1-800-621-FEMA (3362), to register for federal and state disaster assistance for losses between April 1st and 3rd. The hearing- or speech-impaired may call (TTY) 800-462-7585. Both numbers operate from 7 a.m. to 10 p.m. daily. An application can also be filed online, 24 hours a day, at www.fema.gov.
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 08:40:11