SBA Disaster Loans - Not Just For Businesses 

Release Date: May 5, 2007
Release Number: 1697-004

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EAGLE PASS, Texas -- The Federal Emergency Management Agency (FEMA) and the State of Texas want to remind those who suffered damages as a result of the severe storms and tornadoes of April 21-24 that low-interest loans from the U.S. Small Business Administration (SBA) are not just for businesses. The loans are also available for residents in the disaster-designated counties of Maverick, Moore and Swisher.

Most homeowners and renters who register for disaster assistance with FEMA will be referred to the U.S. Small Business Administration (SBA) for assistance in the form of a low-interest disaster loan. SBA is the federal government’s primary source of money for the long-term repair or rebuilding of disaster-damaged private property that is not fully covered by insurance.

If you receive an SBA loan application and need help filling it out, you can meet with an SBA Customer Service Representative at a local Disaster Recovery Center (DRC). These representatives are on hand to answer questions about SBA’s disaster loan program, explain the application process, and help each individual complete their application. If you can’t visit a DRC and need help, you can call SBA at 800-659-2955.

"It is important that those who receive an SBA application fill it out and return it as quickly as possible, even if they are not interested in a loan," said Federal Coordinating Officer Tony Russell. "Individuals who do not qualify for SBA loans may be referred to other available disaster aid programs and filing an application doesn’t obligate anyone to accept a loan."

SBA offers disaster loans up to $200,000 to homeowners to repair or replace damaged or destroyed real estate. Homeowners and renters are eligible to borrow up to $40,000 to repair or replace damaged or destroyed personal property. Interest rates can be as low as 2.875% for homeowners and renters and maximum terms can be for as long as 30 years.

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: Tuesday, 08-May-2007 09:03:17