LAKE CHARLES, Louisiana (KPLC) – The US Small Business Administration loan application offers many benefits to disaster survivors who register for federal aid.
According to FEMA, an applicant who is referred to the SBA during the initial FEMA registration process must complete an application, and if the person chooses not to apply, the federal funding process stops at this point.
FEMA says that if they apply and are turned down for a low-interest disaster loan, it could open the door to additional FEMA grant. FEMA also states that submitting an SBA loan application maintains the full range of optional disaster assistance available.
If the SBA doesn’t approve a loan for you – or approve a small loan that doesn’t cover all of your needs – FEMA grants may be offered to replace essential household items, replace or repair a damaged vehicle, cover expenses. storage costs or meet other serious disaster-related needs, according to FEMA.
No one is required to accept a loan, but the SBA application may be the basis for referrals to other grant programs, according to FEMA. If you have received a reference to the SBA, it is important to complete it online and submit it to the SBA by Monday, May 10.
FEMA says there are important reasons for completing the application and sending it to the SBA, even if you think you don’t currently need a loan:
Â· You may be underinsured. You may find over the next few weeks that you weren’t insured for the amount of work required to repair or replace your home. A low interest SBA disaster loan can cover the difference. In other words, the SBA will close the gap between your collection costs and the settlement amount. Apply with the SBA to keep your options open. The SBA offers homeowners loans of up to $ 200,000 to repair or replace their primary residence. The loans are tailored to your personal financial situation. On a case-by-case basis, the SBA may be able to help you refinance your current mortgage (s).
Â· SBA can also help renters and landlords replace household contents and vehicles, called personal property. You may be able to borrow up to $ 40,000 to repair or replace clothing, furniture, cars or appliances that were damaged or destroyed in the disaster.
According to FEMA, loans are also available for businesses and private non-profit organizations:
Â· For businesses of all sizes and private non-profit organizations – up to $ 2 million to repair or replace damaged or destroyed real estate, machinery and equipment, inventory and other assets.
Â· For small businesses, small businesses engaged in aquaculture, and most private non-profit organizations – up to $ 2 million for working capital requirements, even if they have not suffered any material damage, with a maximum loan of $ 2 million for any combination of property damage and working capital requirements.
Â· Economic harm – only for small businesses and most private nonprofits suffering from the negative financial impacts of the disaster (with or without loss of property), up to $ 2 million for working capital to help pay obligations until normal operations resume.
Businesses and residents can apply online at Disaster Assistance (sba.gov). For questions and assistance in completing an application, call 800-659-2955 or email [email protected]
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