What is the SBA?

The U.S. Small Business Administration (SBA) is a federal agency that assists individual homeowners and renters by providing low-interest, long-term loans to repair or replace real estate or personal property owned by a victim that is damaged or destroyed as the result of a disaster in a federally designated disaster area. The SBA does not duplicate benefits provided by other governmental agencies or private insurance companies (with the potential exception of insurance proceeds that are required to be applied against outstanding mortgages). SBA loans are made on a nondiscriminatory basis and without regard to an applicant’s age.

What kinds of loans does the SBA provide?

As noted in prior sections, the SBA can provide eligible applicants with a personal property loan — to repair or replace personal property (with the exception of luxury or extraordinarily expensive items) — or a real property loan, to repair or replace a primary residence and related real estate owned by the applicant.

What are the amounts of SBA loans?

Personal property loans are in amounts up to $40,000, while real property loans are in amounts up to $200,000. The amount of a specific loan depends on individual circumstances, including the applicant’s ability to repay the loan and the applicant’s past history with the SBA. (For example, if an applicant did not comply with the terms of a prior SBA loan, he or she likely is not eligible for another SBA loan). Generally, loans over $10,000 must be secured by some collateral. If SBA loan proceeds are misused, the applicant must immediately repay 1.5 times the original amount of the loan.

How do I apply for an SBA loan?

Before you can apply for an SBA loan, you must first teleregister with FEMA and obtain a FEMA Control Number. See “FEMA: Process & Procedure” above at page 29. Once you have a FEMA control number, you usually can obtain a SBA loan application from SBA loan officers at any FEMA Local Assistance or Disaster Recovery Center. (For locations, see page 37) If you need assistance in completing the SBA loan, you may call the SBA toll free at (800) 488-5323 or you may seek the assistance of SBA loan officers at the FEMA Local Assistance and Disaster Recover Centers. There is no charge for such assistance.

Is there a deadline for filing for an SBA loan?

Yes, SBA loan applications must be completed and filed BY DECEMBER 26, 2003.