SBA Disaster Loans Still Available For Storm Damaged Homes And Businesses New
The United States Small Business Association’s disaster loans are an important lifeline for individuals and businesses recovering from the effects of recent hurricanes. Established by Congress in 1953, disaster loans are designed to bridge the gap between FEMA assistance and insurance, said Susheel Kumar, public information officer for the Disaster Assistance Bureau. disaster, Field Operations Center-West.
Insurance should be a homeowner’s “first line of defense,” but between deductibles and long lead times, an SBA loan is another great option, he said.
“In my experience, SBA loans are the cure for the community after disaster simply because of the grant and long amortization.”
The SBA loan is administered free of charge, with no closing costs, with a fixed interest rate as low as 1.188 percent and the first payment is deferred for five months.
“It’s subsidized by taxpayers. Banks can’t do our type of loans, ”Kumar said.
Also, unlike insurance, “we lend you whole sums,” he said. “The plaintiff has money working in his favor for the repairs and he can use it quite quickly.”
For those without insurance, many assume they are supposed to rely on FEMA’s initial grant for repairs. But for most people, “giving money is not enough,” he said.
“Grants were never designed to cure you.”
On the contrary, Kumar urged residents who feel frustrated or feel like they’re slipping through the cracks to follow their FEMA application with the SBA loan application.
“This is how the creators had in mind to take care of the community after the disaster – to meet the needs of the many.”
The FEMA grant guarantees individuals “safe, secure and hygienic conditions” to live, but the SBA loan is designed to meet the remaining “unmet needs”. All those who have enrolled in FEMA are “grandfathered” to the SBA program and only need to apply.
Kumar said FEMA referred 27,000 people to the program, but there are still a sizable number of people sitting on the nominations.
“If you have a request, return it,” he said.
Individuals who have registered with FEMA should call 800-659-2955 to launch the SBA application, visit www.sba.gov or complete the application that was mailed to them.
For those who may have initially started the SBA loan process but haven’t completed it for one reason or another, Kumar said, applicants can pick up where they left off.
“Hope is eternal,” he said. “Our process, like any other human process, can have some slowdowns, but we’re here to help. Our job is to meet the needs of as many people as possible. “