BEAVER, WV – July 26, 2010 – (RealEstateRama) — For many West Virginians with property losses from the June storms, a completed U.S. Small Business Administration (SBA) disaster loan application is as essential to recovery as a mop.
While federal grants are one form of recovery help, another key resource is the low-interest disaster assistance loan from the SBA for repairs and replacement of flood-damaged real estate and personal property. $765,000 in loans has been approved for homeowners and renters through Saturday, July 24.
A completed SBA loan application may also enable some households to receive additional disaster assistance from the Federal Emergency Management Agency (FEMA). FEMA applicants who receive SBA loan applications must complete and return them to be considered for FEMA and the state to help with personal property replacement, vehicle repair or replacement and moving and storage expenses. Through Saturday, July 24, this program approved $240,000 in grants for disaster needs other than housing.
No one is obligated to accept a loan.
Homeowners, renters, non-profit organizations and businesses of all sizes can apply for SBA loans to pay for recovery costs not covered by insurance or other sources. People with home-based businesses or rental property who have been affected by the storms may also be eligible for SBA loans.
Homeowners can borrow up to $200,000 to repair or replace their primary residence. Homeowners and renters can borrow up to $40,000 to replace personal property.
Business owners can borrow up to $2 million to repair or replace disaster-damaged real estate, machinery and equipment, inventory and other business assets. SBA also provides small business owner’s access to Economic Injury Loans that provide money for ongoing businesses expenses to recover from the adverse economic impact of a disaster. Economic Injury Disaster Loans are available even if the businesses didn’t sustain physical damages from storms and flooding.
Loan amounts and terms are determined on a case-by-case basis. Interest rates as low as 2.750 percent for homeowners and renters and as low as 4 percent for businesses coupled with payment terms as long as 30 years are intended to make the loans affordable.
West Virginia and federal disaster recovery officials are urging residents to submit their SBA applications as soon as possible in order to continue the financial assistance process. If SBA is not able to approve a loan for a homeowner or renter, they will be referred back to FEMA for any possible assistance.
Long-term recovery groups, who help residents after federal and state programs have ended, will ask applicants if they applied for all disaster loans and grants for which they may have been eligible, including the SBA disaster loan.
Before applying for an SBA loan, register with FEMA by calling 800-621-FEMA (3362) or TTY 800-462-7585 for the speech-or hearing-impaired. Online registration is also available at www.DisasterAssistance.gov. West Virginia residents affected by this disaster may fill out a loan application online by visiting SBA’s secure website at https://disasterloan.sba.gov/ela/.
SBA representatives at disaster recovery centers accept loan applications, answer questions and assist in completing loan applications. Disaster Recovery Centers are open weekday from 10 a.m. to 7 p.m. and Saturdays from 10 a.m. to 2 p.m. at the following locations:
- Logan County: Logan High School, 1 Wildcat Way in Logan
- McDowell County: National Guard Armory on State Highway 16 in Welch
- Wyoming County: Hanover Head Start Center, Old Route 52 S. in Hanover
Questions can also be answered by the SBA Disaster Customer Service Center at 800-659-2955 or 800-877-8339 for the hearing impaired. Customer service specialists are available Monday through Friday from 8 a.m. to 6 p.m. EDT.
Counties designated for federal disaster assistance are Lewis, Logan, McDowell, Mingo and Wyoming. Online help is available at www.sba.gov/services/disasterassistance or by sending an email to disastercustomerservice (at) sba (dot) gov.
FEMA’s temporary housing assistance and grants for disaster-related medical and dental expenses, and funeral and burial expenses do not require individuals to apply for an SBA loan. However, applicants who receive SBA disaster home loan applications must submit them to SBA to be eligible for FEMA assistance that covers personal property, vehicle repair or replacement, and moving and storage expenses.