Disaster Loans Not Just For Businesses
Release Date: October 13, 2004
Release Number: 1549-046
» More Information on Alabama Hurricane Ivan
The U.S. Department of Homeland Security’s Federal Emergency Management Agency (FEMA) and the Alabama Emergency Management Agency (AEMA) want to remind Hurricane Ivan victims that low-interest disaster loans are available from the U.S. Small Business Administration (SBA). These disaster loans are available to homeowners, renters, businesses of all sizes, and private non-profit organizations in the 65 Alabama declared counties.
SBA is the Federal government’s primary source of money for the long term rebuilding of disaster-damaged private property. Through its disaster loan program, SBA provides affordable, timely, and accessible assistance to individuals and businesses that sustained damage from the hurricane.
Homeowners and renters may borrow up to $40,000 to repair or replace damaged or destroyed personal property. Homeowners may borrow up to $200,000 to repair or replace damages to their primary residence. SBA can also lend additional funds to help with the cost of making improvements that protect, prevent or minimize the same type of disaster damage from occurring in the future.
Businesses of any size and private non-profit organizations may borrow up to $1.5 million to repair or replace damaged or destroyed real estate, machinery and equipment, inventory, and other business assets. In addition, small businesses only may borrow up to $1.5 million for working capital to help pay ongoing business expenses.
The loans are designed to be affordable, with terms up to 30 years and interest rates as low as 3.187 percent for homeowners and renters, and 2.9 percent for businesses. The loan amount is based on the actual cost of repairs and covers losses that are not fully compensated by insurance or other recoveries.
According to State Coordinating Officer Bruce Baughman, it is important for those homeowners and renters who receive an application from SBA to complete and return the application as quickly as possible. If SBA is unable to assist an individual with a low-interest loan to cover all of their losses, the applicant may be referred to other disaster assistance programs.
Residents and business owners in the disaster-damaged counties who haven’t applied for assistance should first register by calling 800-621-FEMA (3362) or 800-462-7585 (TTY) for the hearing- or speech- impaired. These lines are open 24-hours daily.
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: Wednesday, 13-Oct-2004 16:01:42