Let’s learn essential updates about SBA Disaster Loan below.

Since 1953, the Small Business Administration(SBA) has assisted individuals and businesses affected by disasters. Whether hurricanes, floods, earthquakes, or pandemics, SBA disaster loans cover physical damage and economic losses. Thus, providing vital support for recovery. But, significant changes hit SBA disaster loans on 22nd/March/2024. Now, you can apply without risking your FEMA aid. 

SBA disaster loan Options

SBA offers borrowers up to $2 million for businesses, $200,000 for homeowners, and $40,000 for renters to cover repairs, replacements, and working capital. A total amount of $982 million was sanctioned towards 11,320 disaster loans in 2023.

Who Qualifies?

Homeowners, renters, and businesses affected by disasters, hurricanes, floods, earthquakes, and pandemics are eligible for SBA assistance. So, even if redirected by FEMA, you have options to pursue SBA support anytime.

SBA Disaster Loan Eligibility Requirements in 2024

It doesn’t matter if you own a business (or) not. Hence, everyone affected by a disaster can seek assistance. But, to receive Public Assistance Grant Funding from SBA, applicants must meet specific criteria related to their status including—

• Facility needing assistance,
• Work requirements, and
• Documented costs associated with recovery efforts.

When Every Minute Counts

Local resources for emergency medical aid (or) shelter are available through partners like the American Red Cross and Salvation Army for immediate assistance. FEMA’s helpline(800-621-3362) also provides information about SBA disaster loan (or) organizations that can assist people during (or) after the disaster.

You may contact 9-1-1 for medical emergencies and use FEMA’s mobile app to locate nearby shelters. For urgent needs like food or temporary housing, contact local emergency management or dial 2-1-1.

FEMA’s Individuals and Households Program(IHP) via SBA offers financial aid and services to those with significant disaster-related expenses and needs. FEMA also steps in to aid individuals recovering from disasters.

SBA disaster loan Application Process:

You need to register with FEMA first.  Thereafter, complete the SBA application online, by mail, (or) at a disaster center. SBA disaster loan sanction typically takes 2-3 weeks. However, applicants aren’t bound to accept loans if they don’t require them.

Repayment Plans

SBA business loans facilitate defrayment terms of up to 30 years. At the same time, home loan defrayment terms may go up to 20 years. Hence, SBA allows ample time for repayments and recovery.

SBA Disaster Loan Interest Rates in 2024

As of 2024, SBA loans feature competitive rates starting at 4% for businesses and 2.5% for homeowners. Therefore, helping the needy with fixed rates throughout the loan duration.

Required Documentation

You need to present essential documents such as—

• Tax returns(3 years),
• Financial statements,
• Property damage estimates,
• Insurance information, and
• Identification proof.

Who Can Apply?

The people/entities mentioned in declared disaster areas can apply for SBA disaster loans including

• Businesses of all sizes,
• Private non-profit organizations,
• Homeowners, and
• Renters.

SBA disaster loan Assistance in 2024

As of July/2024, SBA is actively assisting with 15+ significant disasters across the United States. So, their help covers wide disasters from wildfires to severe storms in multiple states. Further, these loans aim to help communities recover and rebuild after unexpected events. Such recent disasters in 2024 covered by SBA include—

• Hermit’s Peak,
• Calf Canyon Fire,
• Arkansas Severe Storms,
• Florida Severe Storms,
• Iowa Severe Storms(April),
• Iowa Severe Storms(May),

SBA disaster loan for Kentucky Severe Storms,

• Massachusetts Severe Storms,
• Mississippi Severe Storms,
• Nebraska Severe Storms,
• New Mexico Wildfires,
• Oklahoma Severe Storms(April),
• Oklahoma Severe Storms(May),
• Texas Hurricane Beryl,
• Texas Severe Storms,
• West Virginia Severe Storms, Etc.

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