Dec. 24, 2008 — Anyone who has taken out an application for a disaster relief loan in the wake of Hurricane Omar has less than a week now to get the paperwork turned in to the Small Business Administration.
The deadline for homeowners, renters, businesses and private non-profit organizations to file an application for loans to repair physical damage is Dec. 30.
Hurricane Omar struck the territory on Oct. 15-16. In the aftermath, the SBA determined that damage on St. Croix was significant enough to make residents eligible for low-interest damage relief loans.
SBA offers loans of as much as $200,000 to repair disaster-damaged primary residences. Homeowners and renters are eligible for loans of as much as $40,000 to replace personal property such as furniture, appliances and clothing.
Loans of as much as $2 million to businesses and private, non-profit organizations of all sizes are available to repair damage to real estate, machinery and equipment, inventory and other business assets.
Interest rates are as low as 2.875 percent for homeowners and renters and 4 percent for businesses, with terms as long as 30 years. Loan amounts and terms are set by SBA and are based upon each applicant’s financial condition.
Economic Injury Disaster Loans are also available to small businesses and most private, non-profit organizations of all sizes unable to pay bills or meet operating expenses because of the disaster. The deadline for these loans is July 31.
The SBA encourages disaster victims with insurance not to wait for an insurance settlement before applying to the SBA. If victims do 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 for as much as 20 percent of the verified physical loss. These funds are designed to help borrowers pay for protective measures to minimize damages of the same kind in the future.
Disaster victims can obtain an application by calling the SBA’s Customer Service Center at 1-800-659-2955, or 1-800-877-8339 for the hearing-impaired. The center is open from 8 a.m. to 9 p.m. Eastern Standard Time, Monday through Friday. Those seeking relief can also request an application by sending an e-mail to the SBA customer service center at disastercustomerservice@sba.gov.
Completed applications must be mailed to: U.S. Small Business Administration, Processing and Disbursement Center, 14925 Kingsport Road, Fort Worth, TX 76155.
Victims can also apply for disaster loans from the SBA's secure website.
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