BATON ROUGE, Louisiana – The United States Small Business Administration (SBA) loan application offers many benefits to disaster survivors seeking federal assistance. An applicant who is referred to the SBA during the initial FEMA application process must complete an SBA loan application. Applying for a loan keeps the full range of optional disaster assistance available.
Letters of recommendation from the SBA
Applicants are often referred to the SBA after initially applying for federal disaster assistance. Applicants are encouraged to complete the application and return it to the SBA to ensure all options for disaster assistance remain open. The SBA application can be the basis for referrals to other grant programs. No one is required to take a loan.
If you have received a reference to the SBA, it is important to fill it out online and submit it to the SBA by Monday August 2nd.
Why should you complete the SBA application:
The federal funding process stops at this point for survivors who choose not to apply. If you apply and are not eligible for a low interest disaster loan, this may open the door to additional FEMA grant. If the SBA doesn’t approve a loan – or approve a small loan that doesn’t cover all of your needs – you may be eligible for additional FEMA grant to replace essential household items, replace or repair a damaged vehicle, cover costs. storage costs or meet other disaster-related needs.
There are some important reasons to complete and send the SBA application, even if you think you don’t currently need a loan.
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 some or all of the difference. In other words, the SBA can bridge the gap between your collection costs and the settlement amount.
The SBA offers homeowner loans up to the legal maximum of $ 200,000 to repair or replace your 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).
SBA can also help renters and landlords replace household contents and vehicles, called personal property. You may be able to borrow up to the legal maximum of $ 40,000 to repair or replace clothing, furniture, cars or appliances that were damaged or destroyed in the disaster.
For businesses and private non-profit organizations, loans are available for:
Businesses of all sizes and private non-profit organizations – up to $ 2 million statutory to repair or replace property, machinery and equipment, inventory and other assets that have been damaged or destroyed.
Small businesses, those dedicated to aquaculture and most private non-profit organizations – up to statutory $ 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.
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 statutory for working capital to help to pay the obligations until the resumption of normal operations.
SBA has set up a Business Recovery Center which is open Monday through Friday, 9 a.m. to 5 p.m. CST. The Center is located at:
South West Economic and Entrepreneurial Development Center (SEED)
Willis Noland Conference Center, Third Floor
4310 Ryan Street
Lac Charles, LA 70605
For additional assistance, the SBA has set up a virtual outreach disaster lending center that is open Monday through Friday, 7:00 a.m. to 7:00 p.m. CST. You can contact an SBA customer service representative by email at [email protected] or by phone at 800-659-2955. The SBA will answer specific questions about how a disaster loan can help each survivor recover from a disaster and provide one-on-one assistance in completing applications for these loans. You can apply online at https://disasterloanassistance.sba.gov