Louisiana Disaster Survivors: Don’t Throw That SBA Loan Application Away!

BATON ROUGE, La. – If you’re a survivor of the Louisiana storms and flooding that struck the state March 8 through April 8 and you’ve received an application for a U.S. Small Business Administration low-interest disaster loan, you should complete and return it as soon as possible.

Obtaining a low-interest disaster loan may be the solution to your recovery needs by providing you the funds you need for home repair, rebuilding and property loss. Returning the application also may lead you to Federal Emergency Management Agency disaster recovery grants that do not have to be repaid.

While no survivor is obligated to accept a loan, you will be considered for other federal disaster assistance only if you return the SBA loan application.

There are important reasons for you to file the loan application (even if you don’t think you currently need a loan):

•     Your insurance settlement may fall short. As you began to recover from the effects of your personal disaster, you may discover that you were underinsured for the amount of work required to repair or replace your home. An SBA low-interest disaster loan can cover the gap.
•     SBA will work with you to provide a loan that fits your personal budget. If you already have a mortgage on damaged property, SBA specialists can help with a low-interest loan you can afford. In some cases, that may mean your current mortgage loan could be included in your SBA loan which could give you one overall, affordable loan payment on your home.
•     Don’t know how you’ll replace household contents or vehicles? SBA may be able to help.  Homeowners may borrow up to $200,000 for the repair or replacement of real estate. Both homeowners and renters may borrow up to $40,000 to repair or replace clothing, furniture, cars or appliances damaged or destroyed in the disaster.
•     What about businesses that were damaged? If you’re a business owner, you may be able to borrow up to $2 million for physical damage and economic injury.
•     By submitting your SBA loan application, you keep the full range of disaster assistance available as an option. If SBA does not approve a loan, you may be offered a FEMA grant or grants to replace essential household items, replace or repair a damaged vehicle, cover storage expenses or meet other serious disaster-related needs.

SBA Loans have Low Interest Rates.

Interest rates for loans for homeowners and renters can be as low as 1.813 percent. For private nonprofit organizations rates can be a low as 2.625 percent. For businesses rates can be as low as 4 percent.

Even if you qualify for an SBA loan, you are under no obligation to accept it.

Refinancing and relocation loans may be available on a case-by-case basis. Survivors are encouraged to speak with an SBA representative for details.

For more information, call the SBA at 800-659-2955 (800- 877-8339 TTY). Homeowners, renters and businesses may visit SBA’s secure website at disasterloan.sba.gov/ela to apply online for disaster loans.

Although it’s not required to register with FEMA to apply for an SBA loan, you are strongly urged to do so as grants could be available to you from FEMA.  

Register with FEMA for help or information regarding disaster assistance: call 800-621-FEMA (3362), register online at DisasterAssistance.gov or fema.gov/disaster/4263. Help is available in many languages. Cuando llame al 800 621-3362 (FEMA) marque el 1 y escuche las instrucciones en español.
Disaster applicants who use TTY should call 800-426-7585. Those who use 711 or Video Relay Service should call 800-621-3362. Lines are open 7 a.m. to 10 p.m. local time, every day.

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We urge everyone to continue to use caution in areas where floodwaters remain. Monitor DOTD’s 511la.org website for updated road closure information. Look for advisories from your local authorities and emergency managers. You can find the latest information on the state’s response at emergency.la.gov. GOHSEP also provides information at gohsep.la.gov, Facebook and Twitter. You can receive emergency alerts on most smartphones and tablets by downloading the new Alert FM App. It is free for basic service. You can also download the Louisiana Emergency Preparedness Guide and find other information at www.getagameplan.org.

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). If you are deaf, hard of hearing or have a speech disability loss and use a TTY, call 800-462-7585 directly; if you use 711 or Video Relay Service (VRS), call 800-621-3362.

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. Follow us on Twitter at https://twitter.com/femaregion6 and the FEMA Blog at http://blog.fema.gov.

FEMA offers a number of free online resources for home and property owners. To get started, go to fema.gov/safer-stronger-protected-homes-communities or fema.gov/louisiana-disaster-mitigation

The U.S. Small Business Administration (SBA) is the federal government’s primary source of money for the long-term rebuilding of disaster-damaged private property. SBA helps businesses of all sizes, private non-profit organizations, homeowners and renters fund repairs or rebuilding efforts and cover the cost of replacing lost or disaster-damaged personal property. These disaster loans cover losses not fully compensated by insurance or other recoveries and do not duplicate benefits of other agencies or organizations. For more information, applicants may contact SBA’s Disaster Assistance Customer Service Center by calling (800) 659-2955, emailing disastercustomerservice@sba.gov, or visiting SBA’s website at SBA.gov/disaster Deaf and hard-of-hearing individuals may call (800) 877-8339.