The Small Business Administration has low-interest loans for people needing to repair damage from storms last month. And the loans aren’t limited to businesses.
According to R. Gary Colton, SBA communication specialist, SBA loans with a typical interest rate of 2.875 percent are available for homeowners and renters. For business owners, the rate is usually 4 percent, he said.
The first step to qualifying, however, is registering with the Federal Emergency Management Agency. That can be done by calling a toll-free number — 1-800-621-3362.
FEMA will send people affected by storms in Lyon County, between May 4 and 18, a packet of information, which will include SBA loan applications. Colton encouraged people to complete the applications — they can always turn down the money. The following categories are covered by SBA:
• Homeowners may borrow up to $200,000 to repair or replace primary residences;
• Homeowners and renters may borrow up to $40,000 to replace personal property;
• Businesses may borrow up to $1.5 million for any combination of economic or property damage; and
• Small businesses may apply for low-interest working capital loans called Economic Injury Disaster Loans to cover unmet obligations resulting from the disaster.
The loans are for uncompensated damages, Colton said, but applicants don’t have to wait for insurance settlements to apply. He offered an example of a homeowner who carries $50,000 insurance on his home, which is destroyed. Then he finds out that rebuilding the home will cost $100,000. An SBA loan could make up the extra $50,000, avoiding an additional mortgage at market rates.
If anyone wants to talk to an SBA representative, they can call toll-free 1-800-659-2955 to find out where the local disaster recovery center is and when it is open.
On the Net:
www.sba.gov/services/disasterassistance
daveedailey (anonymous) says...
If FEMA was here to survey and visit home owners with flood damage, would they (home owner) have not already been given the packet of information? You would think that if FEMA was so concerned they would have already told people what they need to do in order to qualify. I still have not seen proof that anyone from FEMA was even around. What houses did they visit? What kind of damage was done and what estimate was given for Lyon County? Are they just trying to make a show for all the mistakes they have made? Why isn't there some type of publishment on this info? Has anyone asked if this changes the new unofficial flood plain maps? When are they going to be released? Again, why are they so slow in doing this? As far as I am concerned, FEMA is the biggest joke of tax payer money ever!!!!!!!!!!
June 4, 2007 at 11:02 a.m. ( permalink | suggest removal )