Financing offered through SBA
In efforts to help get information out to those affected by the flood that occurred late spring public information officers from SBA, Cynthia Cowell and Dawn M. Hockett, visited Areawide Media to discuss finances that are available to flood victims.
“SBA helps businesses of all sizes, private, non-profits, including churches, homeowners and renters to recover. We are the arm of the government that is authorized to make low-interest rate loans to homeowners and renters,” said Cynthia Cowell Public Information Office with SBA.
The SBA does require good credit to receive a loan, but are somewhat easier compared to what some bank loans may be. There is a low rate of 1.9 percent. According to Cowell, most people get that rate and everyone is encouraged to apply. “File your insurance claim, register with FEMA, but don’t wait until everything else settles, turn in your SBA application,” said Cowell.
Acceptable credit is a requirement however, they are also understanding of situations that may affect someone’s credit such as if they have gone through a divorce.
SBA is based out of Sacramento, Calif.
Counties that were affected during the flood were: Izard County is a contiguous county. This means they are not eligible for physical damages but for economic injury. Economic injury is also available to declared counties and contiguous counties. “Often, they rely on the damaged county for income,” said Cowell.
Businesses in affected counties are eligible for a low-interest capital loan to help them stay in business. This is to help businesses meet obligations.
Cowell stated they have approved a loan for an individual from Thomasville. He will be moving 500 feet up his hill.
According to information provided by SBA, the organization provides “loans to businesses of all sizes, most private nonprofit organizations and homeowners and renters. Businesses may borrow up to $2 million for any combination of property damage or economic injury. SBA offers low-interest working capital loans (called Economic Injury Disaster Loans) to small businesses, small businesses engaged in aquaculture and most private nonprofit organizations of all sizes having difficulty meeting obligation as a result of the disaster.
Homeowners or renters may be referred to SBA by FEMA. “SBA disaster loans are the primary source of money to pay for repair or replacement costs not fully covered by insurance or other compensation. Homeowners may borrow up to $200,000 to repair or replace their primary residence, and may borrow up to $40,000 to replace personal property.”
There is also refinancing available through SBA. For instance, they “can refinance all or part of prior mortgages that are evidenced by a recorded lien, when the applicant does not have credit available elsewhere, has suffered substantial uncompensated disaster damage (40 percent or more of the value of the property or 50 percent or more of the value of the structure and intends to repair the damage. Business owners may be eligible for the refinancing of existing mortgages or liens on real estate, machinery and equipment. Homeowners may be eligible for the refinancing of existing liens or mortgages on homes, up to the amount of the loan for real estate repair or replacement.”
There are three ways to apply to SBA. After you register with FEMA: apply online using the electronic loan application (ELA) via SBA’s secure website at: https://disasterloan.sba.gov/ela; apply in person at any disaster recovery center and receive personal, one-on-one help from an SBA representative. For additional information or to find a location near you visit our website at http://www.sba.gov/disaster or call SBA at 800-659-2955. Individuals who are deaf or hard-of-hearing may call 800-877-8339. Apply by mail by completing a paper application and mail it to SBA at 14925 Kingsport Rd., Ft. Worth, Texas 76155-2243.
The deadline to apply for physical damage is Aug. 14 and for economic injury is March 15, 2018.