WALLINGFORD, Conn. -- U.S. Small Business Administration (SBA) disaster loans can help homeowners and renters as well as businesses – but only if applicants complete the applications. In fact, most SBA disaster loans go to individuals and families; interest for homeowners and renters is as low as 2.625 percent.
Those loans can only help people if they apply for them – and so far, very few in Connecticut have returned the loan applications sent out by the SBA. Since the federal disaster declaration, the SBA has issued more than 1,200 loan applications, but only 22 have been returned.
Even applicants who do not want an SBA loan should complete and return the SBA applications. If SBA determines that a homeowner or renter cannot afford a loan, they can be considered for other assistance provided by the Federal Emergency Management Agency.
“Don’t let the ‘business’ part of the name confuse you,” said Michael Parker, federal coordinating officer. “During disasters, the SBA provides low-interest, long-term loans to homeowners and renters as well as businesses of all sizes. We need the return of the loan applications to determine what other aid may be available to people.”
SBA disaster loans to individuals may be long-term, helping to make them affordable to many. The SBA can lend up to $200,000 to repair disaster-damaged homes and up to $40,000 for replacement of personal property (including automobiles).
A maximum SBA loan of $2 million is available for a business that suffered disaster losses to its property or equipment, or to a small business for needed working capital due to economic injury until normal operations resume.
FEMA's mission is to support our citizens and first responders to ensure that as a nation we work together to build, sustain, and improve our capability to prepare for, protect against, respond to, recover from, and mitigate all hazards