Is it possible to acquire a federal catastrophe loan?
FEMA collaborates with the US Small Business Administration (SBA) to assist catastrophe survivors once the president declares a disaster. The Small Business Administration (SBA) provides low-interest catastrophe loans to homeowners, renters, and companies. These are long-term disaster recovery loans from the federal government that is designed to assist you in repairing physical damage caused by a disaster that is not fully covered by private insurance or other disaster funds.
What exactly is covered?
The SBA’s initiatives do not duplicate FEMA or other catastrophe recovery programs. Additional grant aid may be available due to an SBA loan application under FEMA’s Other Needs Assistance (ONA) program, which the State of Texas manages. If you don’t apply to the SBA, you may miss out on more assistance, such as compensation for lost personal goods, car repair or replacement, and relocating and storage costs.
Who is eligible to participate?
Businesses of various sizes, landlords, individual homeowners and renters, private nonprofit groups, and small agricultural cooperatives are all eligible.
Is it possible to receive a loan to cover my business’s operational costs?
The SBA offers Economic Harm Disaster Loans (EIDL loans) to firms that have suffered “significant economic injury,” which means they cannot satisfy their commitments and pay their regular and required operational expenditures. EIDLs provide working capital to assist small companies in surviving until regular operations can restart after a catastrophe. An EIDL and a physical catastrophe loan may be available to a company.
How do I submit my application?
FEMA may be reached at (800) 621-FEMA (3362), (800) 462-7585), or you can register online at www.DisasterAssistance.gov.
If you are qualified for an SBA loan, you will get an automatic callback from the SBA to finish your application. You may also apply at a Disaster Recovery Center near you. It’s possible that you may be better served by looking into high quality payday loans if you don’t qualify for an SBA disaster loan Keep in mind that the requirements may be loosened, but you may have to put up more collateral or accept a higher interest rate in order to get a loan.
What is the maximum amount I can borrow?
- Eligible homeowners may get up to $200,000 for house repairs or replacement.
- Up to $40,000 for eligible homeowners and renters to replace disaster-damaged or destroyed personal items.
- Physical damage coverage of up to $2 million for all enterprises, regardless of size.
Under the SBA’s Economic Harm Disaster Loan (EIDL) program, small companies and most private charities may borrow up to $2 million for any combination of property loss and economic injury.
SBA loans are available for up to 30 years. Interest rates for homeowners and renters are as low as 1.688 percent, corporations are at 4%, and private nonprofit organizations are at 2.625 percent.
Deadlines for submitting applications
The length of time it takes to repay a loan depends on the loan. Apply right away. Do not wait for your insurance company to respond to your claims.