SBA Applications are for Both Individuals and Business Owners
Release Date: September 8, 2006
Release Number: 1650-075
» More Information on New York Severe Storms and Flooding
ALBANY, N.Y. -- Following June's severe storms and flooding, many residents who applied for disaster assistance found they were issued a U. S. Small Business Administration (SBA) loan application although they were not business owners.
Federal Emergency Management Agency (FEMA) individual disaster assistance covers basic needs only and will not normally compensate a flood victim for his or her entire loss. Some disaster aid does not have to be paid back, while other forms of help may come in the form of the SBA low-interest disaster loans.
After a federally declared disaster, the SBA may provide low-interest, long-term loans to renters, homeowners, businesses and nonprofit organizations to repair or replace disaster damaged real estate and personal property. The SBA can loan up to $200,000 to repair primary residences and up to $40,000 to replace disaster-damaged personal property. Loans of up to $1.5 million are available for businesses.
The SBA, based on an applicant's uncompensated disaster losses and financial condition, determines actual loan amounts and terms. The interest rate for renters and homeowners can be as low as 2.937 percent and as low as 4 percent for businesses.
"The SBA loan is an important source of recovery funds," said Federal Coordinating Officer Marianne C. Jackson. "However, if a renter or homeowner does not qualify for a loan, he or she may then be considered for a grant from the State/FEMA Other Needs Assistance program, but we won't know that until the loan application has been completed and returned to the SBA."
"We urge anyone, renters, homeowners and business owners alike, who sustained losses because of the storms to apply for assistance and mail in the completed SBA loan application as soon as possible," said John R. Gibb, Director of the New York State Emergency Management Office. "If the loan application is not returned, you may lose out on assistance that may be available to you."
The counties eligible for individual assistance under the presidential declaration for the June severe storms and flooding are Broome, Chenango , Delaware , Herkimer, Montgomery , Oneida, Orange, Otsego, Schoharie, Sullivan, Tioga and Ulster.
People who have questions about their application, or who want to register for disaster assistance, may call FEMA's toll-free number, 1-800-621-FEMA (3362). Those with speech or hearing impairment may call, TTY 1-800-462-7585.
Information on SBA loan applications also is available by calling the toll-free SBA customer service number at 1-800-359-2227, or visiting the SBA Web site at www.sba.gov/disaster.
FEMA's temporary housing assistance and grants for public transportation expenses, medical and dental expenses, and funeral and burial expenses do not require individuals to apply for an SBA loan. However, an applicant must complete an SBA loan application to be eligible for assistance that covers personal property, vehicle repair or replacement, and moving and storage expenses.
