The U.S. Small Business Administration (SBA) Disaster Loan Program – Hurricane Sandy offers this important information:
• Monday, April 1 is the deadline to apply for SBA disaster loans.
• SBA has approved over $652 million in disaster loans.
• SBA offers low interest disaster loans for uninsured or uncompensated losses/ damages for renters, homeowners and businesses of all sizes.
• First register with FEMA at 1-800-622-FEMA (3362).
• It is very important to return SBA applications.
• If approved for a loan, a person can decline the loan. Applicants do not have to accept the SBA loan or can take a portion of the loan.
• SBA offers disaster loans to renters, homeowners and businesses up to $40,000 to replace damaged or destroyed essential items such as cars, appliances, clothing and furniture.
• Homeowners can borrow up to $200,000 to repair their home (real property). The interest can be as low as 1.688 percent and up to 30 years for both renters and homeowners.
• Businesses and nonprofits can borrow up to $2 million for physical property, machinery, equipment and inventory.
• Small businesses and most nonprofits may apply for up to $2 million for Economic Injury to meet working capital needs. There is not a requirement for physical damage to qualify for Economic Injury loan.
• All business loans are at four percent interest and can be up to 30 years. Nonprofit loans are at 3 percent interest and can be up to 30 years.
• Hurricane Sandy survivors can apply online at disasterloan.sba.gov/ela or call SBA Customer Service at 1-800-659-2955 to find Disaster Recovery Center or Disaster Loan Outreach Center to visit and apply.
Why Apply for an SBA Disaster Loan?
• If a person is declined an SBA loan, the person may be eligible for FEMA grants.
• Do not wait for insurance to settle because there may be a shortfall.
• SBA can work with a homeowner to shape a loan that fits their personal budget.
• By submitting an SBA loan application, it keeps the full range of disaster assistance available to applicant.
The U.S. Small Business Administration, Office of Disaster Assistance