Many Good Reasons to Apply to SBA

SPRINGFIELD, Ill. – Nov. 17 tornado survivors who fail to return completed Small Business Administration low-interest disaster loan applications may be saying no to federal assistance.                         

Some survivors may be counting on a future insurance settlement to cover all the costs of rebuilding. Maybe they don’t want a disaster loan or fear they cannot afford one. Or maybe they need assistance completing the SBA disaster loan application.

But there are good reasons for FEMA applicants who have been contacted by SBA to submit a completed disaster loan application by the Monday, Jan. 27 deadline.

SBA offers disaster loans to tornado-affected homeowners, renters, businesses of all sizes and private nonprofit organizations for physical damage in the following Illinois counties: Champaign, Douglas, Fayette, Grundy, Jasper, LaSalle, Massac, Pope, Tazewell, Vermilion, Wabash, Washington, Wayne, Will and Woodford. 

Economic injury disaster loans are available to provide working capital to eligible small businesses and non-profit organizations located in the counties listed above and the adjacent counties.

Some of the top reasons for submitting an SBA application by the deadline include:

• A future insurance settlement may fall short. Survivors may find out they are underinsured for the amount of work it takes to repair or replace a damaged home. An SBA low-interest loan can cover the uninsured costs. By submitting the loan application on time, survivors may have loan money available when it is needed. SBA can approve a loan for the repair or replacement of a home up to $200,000. The loan balance will be reduced by a survivor’s insurance settlement. However, the opportunity for an SBA disaster loan may be lost if they wait until after the application deadline.
• SBA can help renters repair or replace disaster damaged personal property. Renters, as well as homeowners, may borrow up to $40,000 to repair or replace clothing, furniture, appliances, damaged vehicles.
• By submitting an SBA loan application, survivors keep the full range of disaster assistance available as an option. SBA may refer applicants who do not qualify for a loan to FEMA for grants to replace essential household items, replace or repair a damaged vehicle, or cover storage expenses, among other serious disaster-related needs. But if survivors do not submit their disaster loan applications, the assistance process may stop. Survivors are not required to accept a loan offer.                                                                 

For more information, homeowners and renters may call the SBA at 800-659-2955 or TTY 800-877-8339 TTY or visit SBA.gov/Disaster. Survivors can complete disaster loan applications online at https://DisasterLoan.SBA.gov/ELA/.

For the latest information on Illinois’ recovery from the Nov. 17 storms, visit FEMA.gov/Disaster/4157. Follow FEMA online at twitter.com/femaregion5, facebook.com/fema and youtube.com/fema. The social media links provided are for reference only. FEMA does not endorse any non-government websites, companies or applications.

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. Disaster recovery assistance is available without regard to race, color, religion, nationality, sex, age, disability, English proficiency or economic status. If you or someone you know has been discriminated against, call FEMA toll-free at 800-621-FEMA (3362). For TTY call 800-462-7585.

SBA is the federal government’s primary source of funding for the long-term rebuilding of disaster-damaged private property. SBA helps homeowners, renters, businesses of all sizes, and private non-profit organizations fund repairs or rebuilding efforts, and cover the cost of replacing lost or disaster-damaged personal property. These disaster loans cover uninsured and uncompensated losses and do not duplicate benefits of other agencies or organizations. For information about SBA programs, applicants may call 800-659-2955 (TTY 800-877-8339).

FEMA News Desk: 217-522-2080

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