In response to the recent tornadoes and floods, the U.S. Small Business Administration (SBA) is offering U.S. Department of Treasury disaster loans to small business owners affected by the natural disasters. Financial assistance is available to those who are located in an area President Obama has issued a natural disaster declaration.
SBA loans differ from the financial assistance FEMA offers. While FEMA offers financial assistance to residents, which they do not have to repay, the SBA only offers loans that borrowers must repay. These loans, however, are offered with low interest rates. Renters, homeowners and non-profit organizations can also apply for loans through the SBA. Homeowners can borrow up to $200,000, while business owners can borrow a maximum of $2,000,000.
The purpose of the SBA disaster loans is to help ensure business continuity by assisting business owners with the costs associated with flood remediation, the process of restoring wet documents and building repairs. To receive a disaster loan, you must first file a claim with FEMA, which you can do online at www.fema.gov or by calling 1-800-621-FEMA (3362). After filing a claim, FEMA will mail you a recovery package that contains an SBA application.
When you apply for an SBA loan, the lender does not consider your credit score. Instead, the lender bases its decision on your circumstances, need and ability to repay the loan amount requested. When filing a disaster claim, you will need you Social Security number, the address of the building in need of storm damage restoration, your current address, a current telephone number, insurance information, information regarding your income and a description of your losses.