Completing SBA Loan Application Is The Key To Full Texas Disaster Assistance
Release Date: October 8, 2008
Release Number: 1791-100
» More Information on Texas Hurricane Ike
AUSTIN, Texas -- Texans who suffered damages or losses from Hurricane Ike and received a loan application from the U.S. Small Business Administration (SBA) are urged to complete and return the application. Doing so will ensure the applicants are considered for the full range of disaster assistance that may be available to them.
SBA serves as the federal government's primary source of money for the long-term rebuilding of disaster-damaged private property. SBA helps homeowners, renters, businesses of all sizes, and private non-profit organizations fund repair or rebuilding efforts, and cover the cost of replacing lost or disaster-damaged personal property.
Officials with the SBA report a total of more than $3.8 million in SBA loans have already been approved for Ike-related damages and losses in Texas.
Homeowners may borrow up to $200,000-with interest rates as low as 2.875 percent-for the repair or replacement of their primary residence not fully compensated by insurance. Homeowners and renters may also borrow up to $40,000 with the same interest rates for replacement of personal property including vehicles.
Businesses and nonprofits may apply to borrow up to $2 million-with interest rates as low as 4 percent-for the following:
- Loans to repair damage to real estate, machinery, equipment, inventory and supplies.
- Economic injury loans (for small businesses and most private non-profits) to help provide working capital to recover from the disaster's economic impact.
Collateral is not required for physical loss loans of $14,000 or less or for economic injury loans of $5,000 or less.
Homeowners and renters who apply for an SBA loan and who are declined, as well as those who are not issued a loan application, may be referred to FEMA's Other Needs Assistance (ONA) grant program. Homeowners and renters must return the SBA application, if they receive one, to be considered for ONA. ONA provides reimbursements for personal property losses, vehicle repair or replacement, moving and storage fees, and other serious disaster-related expenses not covered by insurance or other sources. Besides ONA, FEMA may also provide grants to help pay for temporary housing and home repairs.
Other SBA loan application facts:
- The application should be completed even if an individual does not want or believe he or she qualifies for a loan. Determination for additional assistance cannot be made until the application is submitted; registrants should complete applications as soon as possible.
- FEMA will process applications for housing assistance regardless of whether the applicant has applied for an SBA loan.
- Insured residents do not have to wait for an insurance settlement to apply to SBA.
- Completing an SBA application does not guarantee approval for a loan.
- Completing the loan application does not obligate anyone to accept a loan.
SBA specialists are working at the federal-state Disaster Recovery Centers (DRCs) 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.
Anyone not able to visit a DRC should call the SBA Customer Service Center at 800-659-2955, for information and assistance. Applicants also may visit the SBA Web site at www.sba.gov/services/disasterassistance, or e-mail the SBA at disastercustomerservice@sba.gov.
Those with questions on the status of their FEMA applications may call FEMA at 800-621-3362, TTY 800-462-7585, or go online to www.fema.gov.
The Sept. 13 presidential disaster declaration made federal funding available to affected individuals in 29 Texas counties: Angelina, Austin, Brazoria, Chambers, Cherokee, Fort Bend, Galveston, Grimes, Hardin, Harris, Houston, Jasper, Jefferson, Liberty, Madison, Matagorda, Montgomery, Nacogdoches, Newton, Orange, Polk, Sabine, San Augustine, San Jacinto, Trinity, Tyler, Walker, Waller, and Washington.
Small businesses and most private non-profit organizations of all sizes in the contiguous counties are eligble to apply to SBA for economic injury loans only.
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: Wednesday, 08-Oct-2008 13:36:51