INDIANAPOLIS, Ind. -- Registering with the Federal Emergency Management Agency (FEMA) and completing a low-interest disaster loan application from the U.S. Small Business Administration (SBA) are two steps to take to recover from severe storms that occurred from Feb. 29 through March 3 in Clark, Jefferson, Ripley, Scott, Warrick and Washington counties.
Although these steps are separate, they often go hand-in-hand on the road to recovery. You may have already registered with FEMA, but like the 22 Hoosiers who have already had disaster loans approved thus far, you might also benefit from low-interest disaster recovery loans through the SBA.
SBA loans help homeowners, renters, businesses of all sizes and private nonprofit organizations fund repair or rebuilding and may cover the cost of replacing lost or damaged personal property, including a car or business assets. SBA loans may cover insurance deductibles, code-required upgrades and other costs not covered by insurance or other sources.
The SBA offers disaster loans up to $200,000 to homeowners to repair or replace disaster damaged or destroyed real estate. Homeowners and renters are eligible for up to $40,000 to repair or replace disaster-damaged or destroyed personal property. Businesses and private nonprofit organizations of any size may borrow up to $2 million for disaster-related losses. Interest rates are as low as 1.875 percent for homeowners and renters, 3 percent for nonprofit organizations and 4 percent for businesses with terms up to 30 years.
The SBA may increase a loan by up to 20 percent of the total amount of disaster damage to make improvements that lessen the risk of property damage by future disasters of the same kind.
For small businesses, small agricultural cooperatives, small businesses engaged in aquaculture, and most private non-profit organizations, the SBA offers economic injury disaster loans to help meet working capital
needs caused by the disaster. This assistance is available regardless of whether the business suffered any physical property damage.
The filing deadline to return SBA applications for physical property damage is May 8. The deadline to return economic injury SBA applications is Dec. 10. SBA loan applications should be returned as soon as possible.
SBA opened a Business Recovery Center on March 26 in Scottsburg, IN. Customer Service Representatives are on hand at the center to issue and accept loan applications, answer questions about the disaster loan program and explain the application process.
The center, which remains open Mon. through Fri.; 8 a.m. to 5 p.m., until further notice, is located at:
Scott County Economic Development Corporation
821 South Lake Road South
Scottsburg, IN 47170
Additional assistance is available through the SBA Customer Service Center at (800) 659-2955 or (800) 877-8339 for people with speech or hearing disabilities), or by sending an email to firstname.lastname@example.org. Those affected by this disaster may also apply for disasters loans electronically through the SBA’s website at https://disasterloan.sba.gov/ela/.
SBA application may impact FEMA aid
In some cases, homeowners and renters will be referred to FEMA for assistance, either in addition to or instead of an SBA loan. Everyone who is issued a loan application is advised to return it. Not returning an application may end the process for further consideration. Even if a loan is approved, the applicant is not required to accept it.
Register with FEMA
Registering with FEMA is the first step for homeowners, renters and business owners to obtain federal disaster assistance. One easy ...