SBA Encourages Qualifying Flood Victims to Apply for Disaster Loans

Posted on June 19, 2018
Author Michael Gallenberger, WKVI

Those who experienced flood damage this past February may qualify for low-interest disaster loans from the U.S. Small Business Administration. Federal disaster assistance is now available to residents, businesses, and non-profit organizations across the local area, including Marshall, Starke, and Pulaski counties. The deadline to apply is July 5.

SBA Public Affairs Specialist Brian Beard says that for homeowners and renters, the first step is to register with FEMA. “The first thing they do is look at the financial situation, and somebody who has enough income is quite possibly going to get referred to the SBA for a loan because FEMA just concentrates on the safety and security of the home,” he said during a presentation at Monday’s Pulaski County Commissioners meeting. “And so if somebody does get referred to the SBA, it’s important for them to follow through, and even if they’re not sure they want a loan, they should go ahead and apply. There’s no cost. And if the loan gets turned down for any reason, they might be referred back to FEMA for more direct aid.”

Businesses and non-profit groups looking for disaster loans may apply directly with the SBA. Those who qualify for a loan have two months to decide whether or not to accept it.

Beard said loans of up to $200,000 are available for a homeowner’s primary residence, while up to $40,000 is available for personal property. “Businesses can get up to $2 million, not only for physical damage,” he explained, “but if there’s an interruption in sales and income, in direct effect from flooding, like if a bridge got washed out and you couldn’t get to the business or something, you can get a working capital loan to cover monthly costs, until sales come back up again.”

Beard said repayment terms are up to 30 years, based on the applicant’s ability to pay, and there’s no payment for the first six months. “The SBA loans are directly from the federal government, and the interest rate will not change,” he said. “So it’s 1.813 percent for home or the personal property, and that includes the personal vehicle, the automobile, and 3.58 percent for businesses and 2.5 percent for non-profits.”

To apply for an SBA disaster loan, visit DisasterLoan.sba.gov, or call 800-621-3362 for more information. To register with FEMA, visit DisasterAssistance.gov.