SBA Disaster Loans are Not Just for Businesses

Homeowners and renters who suffered damage from Hurricane Katrina are eligible for low-interest disaster loans from the U.S. Small Business Administration (SBA). “Although we are the Small Business Administration, SBA disaster loans are not just for small businesses. As a matter of fact, SBA makes the majority of its disaster loans to homeowners and renters,” said SBA Administrator Hector V. Barreto.

SBA disaster loans are the primary source of federal funds for repairing or rebuilding disaster damage to private property owned by homeowners and renters. Homeowners may borrow up to $200,000 to repair or replace damaged or destroyed real estate. Homeowners and renters may borrow up to $40,000 to repair or replace damaged or destroyed personal property, including vehicles.

SBA’s disaster home loans have low interest rates (less than 3 percent) and long terms (up to 30 years), helping to make recovery more financially affordable. SBA tailors loan terms based upon each borrower’s ability to repay. According to Barreto, “SBA disaster loans are the main source of money for these hurricane victims to fund repair or replacement costs not covered by insurance or other compensation. And in some cases, SBA can refinance prior mortgages in order to help the victim recover.”

SBA representatives are stationed in every Federal/State Disaster Recovery Center to provide program information, answer questions, and assist with the application process. Homeowners and renters should begin by contacting the Federal Emergency Management Agency at 800-621-FEMA.

For more information, individuals can contact SBA’s Disaster Assistance Customer Service Center by calling 800-659-2955 between 6 a.m. and 1 a.m., seven days a week. The number for the hearing-impaired is 800-877-8339. Business owners may also use that number to obtain an application or they can visit SBA’s website at http://www.sba.gov/disaster. Completed applications should be returned in person to any DRC location or mailed to U. S. Small Business Administration Disaster Assistance, 14925 Kingsport Highway, Fort Worth, TX 76155.