NEPTUNE, N.J. — Hurricane Irene survivors in New Jersey who are including a U.S. Small Business Administration (SBA) loan as part of their recovery efforts are taking low-interest disaster loans for an average of about $40,000.
Business owners affected by Irene are securing loans that average about $125,000, according to Al Titone, SBA’s district director for New Jersey.
Titone said SBA loan applications are offered to many storm survivors who have registered for federal disaster assistance with the Federal Emergency Management Agency (FEMA). Completing the SBA application is an important part of the process of receiving assistance.
SBA’s disaster loans are meant to cover uninsured losses. They can help with the cost of replacing drywall, restoring landscaping, repairing foundation damage and removing debris, as well as meet other repair needs and replace lost or damaged personal items.
By returning the SBA loan application, homeowners may be eligible for up to $200,000 to repair or replace their storm-damaged home. Homeowners and renters may be eligible for up to $40,000 for replacement of personal property. Interest rates are as low as 2.5 percent; terms are up to 30 years.
Businesses and private non-profit organizations of any size may borrow up to $2 million for physical losses and working capital needs. Interest rates are 3 percent for non-profit organizations and 4 percent for businesses with terms up to 30 years.
If an applicant has a question, help is available by calling SBA Customer Service at 800-659-2955 or TTY 800-877-8339. Advice is also available by emailing DisasterCustomerService@sba.gov.
There is no obligation to accept an SBA loan if offered. Completing the application, whether or not a loan is offered, may open the door to other possible assistance, including additional federal grant funds for homeowners and renters.
To date, nearly $135 million in FEMA grants has been approved to support the New Jersey recovery. More than $40 million has been approved as low-interest loans from the SBA.