SBA Disaster Loans Are Critical For Recovery
Release Date: October 15, 2008
Release Number: 1800-011
» More Information on Illinois Severe Storms and Flooding
CHICAGO, Ill. -- The agency is called the U.S. Small Business Administration (SBA), but the name may be misleading. In addition to working with small businesses, the SBA is the nation's primary source of assistance to individual homeowners and renters, as well as businesses of any size, when there is a federally-declared disaster.
The Federal Emergency Management Agency (FEMA) and the Illinois Emergency Management Agency (IEMA) urge anyone with property losses from the severe storms and flooding Sept. 13-Oct. 5 in Cook, DeKalb, DuPage, Grundy, Kane, LaSalle and Will counties to register with FEMA as a first step to accessing all forms of federal disaster assistance, including SBA loans.
"FEMA has several assistance programs for people with uninsured property losses from a disaster," explained Libby Turner, the agency's federal coordinating officer. "Some homeowners and renters will be eligible only for grants, some will be eligible for grants and loans, and some will be eligible only for loans. The only way to find out what programs can help you is to register."
Disaster victims may register online at fema.gov or by calling 800-621-FEMA (3362) or TTY 800-462-7585 24 hours a day, seven days a week. Multilingual specialists are available through these registration numbers as well.
Temporary housing assistance does not require that an applicant file for an SBA disaster loan. Other assistance that does not require filling out a loan application: public transportation, medical, dental, funeral and burial expenses.
FEMA can provide grants to repair or replace damaged or lost personal property and vehicles only to people whom SBA determines to be ineligible for disaster loans. The same goes for moving and storage expenses. That is why anyone who needs this type of assistance must return their SBA forms-even if they do not want a loan. No one is required to accept a loan.
SBA disaster loan interest rates are as low as 2.875 percent for homeowners and renters, and 4 percent for businesses, with terms up to 30 years. Loan amounts and terms are set by the SBA and are based upon each applicant's financial condition.
SBA representatives are at the FEMA Disaster Recovery Centers (DRCs) that are open now or will be opening in the affected counties. These specialists can answer questions about SBA disaster loans and help applicants complete the forms. Local emergency managers can provide information about DRC locations.
Help with SBA loan applications is also available by calling the SBA at 800-659-2955 or going online to sba.gov/services/disasterassistance or e-mailing disastercustomerservice@sba.gov.
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, 15-Oct-2008 13:17:24