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Small Business Administration News Release
CONTACT: Michael Lampton, SBA (404) 347-3771
FOR RELEASE AT WILL
Nov. 16, 2006
Richmond, Va. -- The U.S. Small Business Administration is reminding homeowners, renters, non-profit organizations and businesses that one month remains to submit disaster loan applications for damage caused by Tropical Storm Ernesto that occurred August 30 through September 1, 2006. The deadline to file an application for physical damage is December 15, 2006. Homeowners, renters, nonprofit organizations and businesses that sustained physical damage in the counties of Gloucester and Northumberland and independent cities of Hampton, Newport News and Richmond; and contiguous counties of Chesterfield, Henrico, James City, King and Queen, Lancaster, Mathews, Middlesex, Richmond, Westmoreland and York; and the independent city of Poquoson in the Commonwealth of Virginia are eligible to apply.
SBA offers loans up to $200,000 to repair disaster damaged primary residences. Homeowners and renters are eligible for loans up to $40,000 to replace personal property such as furniture, appliances and clothing. Loans to businesses of all sizes and non-profit organizations are available up to $1.5 million to repair damage to real estate, machinery, equipment and inventory. Economic Injury Disaster Loans (EIDLs) are also available to small businesses unable to pay bills or meet operating expenses because of the disaster.
Interest rates can be as low as 3.125 percent for homeowners and renters and 4.000 percent for businesses with terms up to 30 years. Loan amounts and terms are set by SBA and are based upon each applicant’s financial condition.
Additionally, disaster victims with insurance should not wait for an insurance settlement before applying to SBA. If a victim does not know how much of their loss will be covered by insurance or other sources, SBA will consider making a loan for the total loss up to its loan limits, provided the borrower agrees to use insurance proceeds to reduce or repay their SBA loan.
SBA also offers mitigation funds to disaster victims who have approved physical loans. SBA’s mitigation funds are designed to help borrowers fund protective measures which may prevent damages of the same kind from recurring in the future. To help fund these protective measures, borrowers may request an additional 20 percent of their approved loan amount for mitigation measures.
Disaster victims may obtain an application by calling the SBA’s Customer Service Center at 1-800-659-2955 (1-800-877-8339 for the hearing-impaired), Monday through Saturday from 8 a.m. until 12 a.m. (Midnight) and Sunday from 12 p.m. (noon) until 12 a. m. (midnight) EST. Business loan applications can also be downloaded from the SBA Web site at www.sba.gov/services/disasterassistance. Completed applications should be mailed to: U.S. Small Business Administration, Processing and Disbursement Center, 14925 Kingsport Road, Fort Worth, TX. 76155.
The filing deadline to return applications for property damage is December 15, 2006. The deadline to return economic injury applications is July 16, 2007.
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