News by SB Informer

SBA's Deadline to Apply for Physical Disaster Loans is January 22

SB Informer
Tuesday, December 19, 2006; 01:36 AM

The U.S. Small Business Administration (SBA) is reminding homeowners, renters and businesses that one month remains to submit disaster loan applications for damage caused by severe storms and flooding that occurred November 15-16, 2006. The deadline to file an application for physical damage is January 22, 2007. Homeowners, renters, non-profit organizations and businesses that sustained physical damage in Greene, Jones and Lamar counties and the contiguous counties of Covington, Forrest, George, Jasper, Jefferson Davis, Marion, Pearl River, Perry, Smith and Wayne in the State of Mississippi, and the adjacent counties of Mobile and Washington in the State of Alabama are eligible to apply.

SBA offers loans up to $200,000 to repair disaster damaged primary residences. Homeowners and renters are eligible for loans up to $40,000 to replace personal property such as furniture, appliances and clothing. Loans to businesses of all sizes and non-profit organizations are available up to $1.5 million to repair damage to real estate, machinery, equipment and inventory. Economic Injury Disaster Loans (EIDLs) are also available to small businesses unable to pay bills or meet operating expenses because of the disaster.

Interest rates can be as low as 3.0 percent for homeowners and renters and 4.0 percent for businesses with terms up to 30 years. Loan amounts and terms are set by SBA and are based upon each applicant's financial condition.

Additionally, disaster victims with insurance should not wait for an insurance settlement before applying to SBA. If a victim does not know how much of their loss will be covered by insurance or other sources, 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.

SBA also offers mitigation funds to disaster victims who have approved physical loans. SBA's mitigation funds are designed to help borrowers fund protective measures which may prevent damages of the same kind from recurring in the future. To help fund these protective measures, borrowers may request an additional 20 percent of their approved loan amount.

Disaster victims may obtain an application by calling the SBA's Customer Service Center at 1-800-659-2955 (1-800-877-8339 for the hearing-impaired), Monday through Friday from 8 a.m. until midnight (EST). Business loan applications can also be downloaded from the SBA website at http://www.sba.gov/services/disasterassistance. Completed applications should be mailed to: U.S. Small Business Administration, Processing and Disbursement Center, 14925 Kingsport Road, Fort Worth, TX. 76155.

The application deadline for physical damage is January 22, 2007; the deadline for economic injury applications is August 22, 2007.

For more information about the SBA's Disaster Loan Programs, visit our website at http://www.sba.gov/services/disasterassistance.

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