Completed SBA Applications Help Speed Disaster Assistance
Release Date: January 15, 2005
Release Number: 1539-347
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ORLANDO, Fla. -- Floridians who received a U.S. Small Business Administration (SBA) loan application for disaster assistance are encouraged to complete and return them as soon as possible. Doing so will keep the door open for other types of assistance, federal and state officials said today.
Applications are sent to disaster victims who may qualify for disaster aid as a result of the 2004 hurricanes after registering with the Department of Homeland Security’s Federal Emergency Management Agency (FEMA) by phone at 1-800-621-FEMA (3362) or online at www.fema.gov. The TTY number for speech- or hearing-impaired individuals is 1-800-462-7585.
“I’m concerned because the loan application provides the necessary information for determining the appropriate assistance for each applicant and SBA has only had about 25 percent of the applications returned,” said Craig Fugate, state coordinating officer for the State of Florida Emergency Response Team (SERT). “That tells me that 75 percent of the victims that registered are excluding themselves from additional forms of assistance.”
Additionally, disaster victims with insurance should not wait for their insurance settlement before applying to the SBA. If a borrower is unsure about how much of their loss will be covered by insurance or other sources, the SBA will consider making a loan for the full amount of the loss, up to its loan limits. The approval of such a loan is contingent upon the borrower’s agreement to use insurance proceeds that duplicate the loan to pay off or reduce the amount of the SBA loan.
“We want to make sure that every disaster victim remains eligible for help from all of the various programs which may be available to them,” said Bill Carwile, federal coordinating officer. “The best and fastest way to accomplish that is to submit the SBA application. If SBA cannot offer a homeowner or renter a disaster loan, they will refer the case onward to other sources of assistance.”
SBA low-interest disaster loans are available to qualified renters, homeowners, landlords, business owners, and non-profit organizations that suffered damage or loss due the disaster. Interest rates can be as low as 3.187 percent for homeowners and renters, and 2.900 percent for business and non-profits. Loan terms on all loans can be as long as 30 years. Actual loan amounts and terms are set by the SBA and are based on each applicant’s financial condition.
More than $850 million has been approved for qualified homeowners and renters, and $263 million for businesses who suffered damage as a result of the hurricanes.
Those who need help completing the loan application or need additional information should visit an SBA loan officer at a Disaster Recovery Center. Information can also be found by calling the SBA Helpline at 1-800-359-2227 or visiting www.sba.gov/disaster.
The State Emergency Response Team (SERT) is a collaboration of Florida’s state agencies led by the state coordinating officer. SERT’s mission is to ensure that Florida is prepared to respond to emergencies, recover from them, and mitigate their impact. Visit http://www.floridadisaster.org for the latest information on the hurricane relief efforts.
FEMA prepares the nation for all hazards and manages federal response and recovery efforts following any national incident. FEMA also initiates mitigation activities, trains first responders, works with state and local emergency managers, and manages the National Flood Insurance Program and the U.S. Fire Administration. FEMA became part of the U.S. Department of
Homeland Security on March 1, 2003.
Last Modified: Tuesday, 18-Jan-2005 10:41:21