SBA: File Disaster Loan Applications Right Away

Disaster survivors should not wait to settle with their insurance company before applying for disaster loan assistance. The SBA encourages disaster survivors to return their completed applications as soon as possible.

“Waiting to file an SBA application could cause unnecessary delays in receiving disaster assistance, and the survivors may miss the application deadline,” said Frank Skaggs, director of SBA Field Operations Center East. If a victim does not know how much of their loss will be covered by insurance or other sources, the SBA will consider making a loan for the total loss up to its loan limits, provided the borrower agrees to use insurance proceeds to reduce or repay their SBA loan.

Disaster loans up to $200,000 are available to homeowners to repair or replace disaster damaged or destroyed real estate. Homeowners and renters are eligible up to $40,000 to repair or replace disaster damaged or destroyed personal property.

Businesses and private non-profit organizations of any size may borrow up to $2 million to repair or replace disaster damaged or destroyed real estate, machinery and equipment, inventory, and other business assets. The SBA may increase a loan up to 20 percent of the total amount of disaster damage to real estate and/or leasehold improvements, as verified by SBA, to make improvements that lessen the risk of property damage by future disasters of the same kind.

For small businesses, small agricultural cooperatives, small aquaculture enterprises and most private non-profit organizations of all sizes, the SBA offers Economic Injury Disaster Loans to help meet working capital needs caused by the disaster. Economic Injury Disaster Loan assistance is available regardless of whether the business suffered any physical property damage.

Interest rates are as low as 2.688 percent for homeowners and renters, three percent for non-profit organizations and four percent for businesses with terms up to 30 years. Loan amounts and terms are set by the SBA and are based on each applicant’s financial condition.

For additional assistance, call the SBA’s Customer Service Center at 800-659-2955 (800-877-8339 for people with speech or hearing disabilities) Monday through Friday from 8 a.m. until 6 p.m., and Saturday from 9 a.m. to 5:30 p.m. ET or send an e-mail to disastercustomerservice@sba.gov . Loan application forms can be downloaded from the SBA website at www.sba.gov . Completed applications should be mailed to: U.S. Small Business Administration, Processing and Disbursement Center, 14925 Kingsport Road, Fort Worth, TX 76155.

Those affected by disaster may fill out a loan application online by visiting SBA’s website at https://disasterloan.sba.gov/ela/ .

For more information about the SBA’s Disaster Loan Program, visit www.sba.gov .