sbaThe Small Business Administration (SBA) is offering assistance to anyone who suffered damage from Hurricane Idalia that occurred on August 27th-September 4th. The deadline to apply is October 30th.

Below, you will find copies of the SBA Disaster Loan fact sheet (English and Spanish) and flyers for both home loans and business loans, which describe the low-interest loans available to homeowners, renters, businesses and non-profits who suffered damage from Hurricane Idalia.

The SBA has already approved over $15 million in loans, but there are a very large number of people and businesses who could still use help and may not know what is available. To date, 131 homeowners in Pinellas County have received loans totaling $10.2 million, but only 5 businesses have received disaster loans for physical damage.

The documents below provide the phone number and website for applying for a disaster loan online. Also included are the locations of the recovery centers where people can go to start the process of getting assistance, get their questions answered, and apply for a loan (or register with FEMA as a first step for homeowners and renters).

Some features of the SBA Disaster Loans:

  • SBA Disaster Loans cover the cost of damages not covered by insurance or another source
  • Homeowners can borrow up to $500,000
  • Homeowners and renters can borrow up to $100,000 for personal property damage
  • Businesses and non-profits can borrow up to $2 million, for physical damage (including equipment, inventory, etc.) and/or economic injury
  • Even if a business owner does not have physical damage, they can still borrow money to provide working capital, if they had a significant drop in sales as a result of the disaster.
  • No interest or payments for the first year of the loan
  • No cost to apply. No closing costs. No prepayment penalties.
  • If waiting for an insurance settlement, a business or homeowner can get an SBA loan to allow them to start repairing damage and replacing inventory or personal property, and once the insurance money arrives, it is used to pay off the loan. Thus, it can be used as a bridge loan while waiting for insurance, and if paid off within a year, it is a free loan. (The State offers a 1-year bridge loan with no interest to businesses, but if it is not repaid in one year, the interest rate is much higher). Our loan is free for the first year, and then 4.0% interest with up to a 30-year term, making it a lot easier to repay.
  • An SBA loan can also be used to cover an insurance deductible, and one can request an additional 20% of total estimated damage to be used for mitigation to prevent future damage. (sump pump, retaining wall, elevation, safe room, stronger shingles, etc.)
  • If offered a loan, you have 2 months to decide whether or not you want to accept it.   Apply now. Decide later.
  • Loan terms can be up to 30 years, with relatively small payments.
  • At an interest rate of 4% for most businesses, and 2.5% for most homeowners, renters and non-profits, it is much better than ending up using a credit card or other source to cover operating expenses or repairs.
  • Home loans are for one’s primary residence, but if someone owns a rental property, earns rental income and pays taxes on that rental income, like a business, they can apply for a business loan to fix damage to the rental property.

For homeowners and renters with damage, it is important for everyone to register with FEMA first, to see if they can get some grant money. FEMA focuses on those most in need, and to ensure everyone has as safe and secure place to live. This includes possibly getting rental assistance for a place to stay for 1 or 2 months if the home is not habitable/safe to live in. But assistance for personal property (the contents of the home) is prioritized for those most in need. After registering with FEMA, those above a certain income level may receive a letter saying they have been referred to the SBA. FEMA may still help with temporary housing and basic repairs if the home is not habitable. However, if someone is referred to the SBA, it is very important for the person to follow through and apply for a loan, even if they do not want one. If the loan is denied, they may be referred back to FEMA for possible additional grant assistance for personal property, including cars. FEMA funding does not repair or replace everything like insurance would but provides the basic necessities. And if their no-cost SBA loan application is approved, they have 2 months to decide whether they want or need it. (Apply now. Decide later.)

If a homeowner or renter gets that referral letter and doesn’t do anything else, they lose the possibility of getting additional federal assistance for personal property damage.

If you have damage not covered by insurance, or if you do not yet know how much will be covered by your insurance company, you should apply now and decide later, before the October 30th deadline.

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