Texans Urged to Apply for Low-Interest Disaster Loans to Aid Recovery

AUSTIN, Texas – Federal officials are urging applicants for federal assistance from the April 17-24 floods to complete a disaster loan application from the U.S. Small Business Administration as part of their recovery process.

Officials from the Federal Emergency Management Agency and SBA said residents of eight counties – Austin, Colorado, Fayette, Grimes, Harris, Parker, Waller and Wharton – who sustained damage or losses from the storms and flooding should complete the loan application even if they don’t want a loan.

“Don’t be fooled by the name. The SBA helps homeowners and renters, too,” said Federal Coordinating Officer Kevin Hannes, who is in charge of FEMA’s operations in Texas. “If you don’t complete the SBA loan application, you could be leaving ‘money on the table,’ for your recovery.”

That’s because Other Needs Assistance grants can pay for uninsured losses for storage, furniture, appliances and other personal property – even a car – but only if the individual or household does not qualify for the SBA loan.

Even if applicants are approved for a loan, they don’t have to take it. Assistance from FEMA can be used to help jump-start the recovery; it may not cover all damage or property loss. If approved, and the loan is not accepted, it may make the survivor ineligible for additional federal assistance.

Many Texans who register for disaster assistance with FEMA will receive an automated call from SBA with information on how to complete the loan application process. These low-interest SBA loans are the major source of funding for disaster recovery.

SBA provides low-interest loans to businesses of all sizes as well as landlords, homeowners, renters and eligible private nonprofit organizations that sustained disaster damage. There is no cost to apply for a loan.

Interest rates can be as low as 4 percent for businesses, 2.625 percent for private nonprofit organizations and 1.813 percent for homeowners and renters with terms up to 30 years.

• Eligible homeowners may borrow up to $200,000 for home repair or replacement of primary residences, and eligible homeowners and renters may borrow up to $40,000 to replace disaster-damaged or destroyed personal property, including a vehicle. 
• Businesses of all sizes can qualify for up to $2 million in low-interest loans to help cover physical damage.
• Small businesses and most private nonprofits suffering economic impact due to the severe weather and flooding can apply for up to $2 million for any combination of property damage or economic injury under SBA’s Economic Injury Disaster Loan program.

Applicants may apply online using the electronic loan application via SBA’s secure website at DisasterLoan.sba.gov/ela.

Disaster loan information and application forms are available online at SBA.gov/disaster, from SBA’s Customer Service Center by calling 800-659-2955 or emailing DisasterCustomerService@sba.gov. Individuals who are deaf or hard of hearing may call 800-877-8339.

Completed applications should be mailed to:

U.S. Small Business Administration

Processing and Disbursement Center

14925 Kingsport Road

Fort Worth, TX  76155                                                                                                                                         

People with storm losses from April who need to register with FEMA can go online anytime at

DisasterAssistance.gov. Survivors also can register with FEMA by phone (voice, 711 or video relay service) at 800-621-3362 (FEMA), TTY 800-462-7585. The toll-free lines are open 7 a.m. to 10 p.m. local time, seven days a week. Multilingual operators are available.

# # #

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.