Disaster Assistance Available for Small Businesses Following Winter Storm

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Disaster Assistance Available for Small Businesses Following Winter Storm

U.S. Small Business Administration • Mar 03, 2021

If you live in a declared disaster area and have experienced damage to your home or personal property, you may be eligible for financial assistance from SBA.

Eligibility

Homeowners may apply for up to $200,000 to replace or repair their primary residence.
Renters and homeowners may borrow up to $40,000 to replace or repair personal property — such as clothing, furniture, cars and appliances — damaged or destroyed in a disaster.
Secondary homes or vacation properties are not eligible for these loans. However, qualified rental properties may be eligible for assistance under the SBA business physical disaster loan program.
These loans cover disaster losses not fully covered by insurance or other sources. Proceeds from insurance coverage on home or property may be deducted from the eligible loan amount.

Use of proceeds

You may not use the funds to upgrade homes or make additions, unless required by the local building code.
You may be eligible for up to a 20 percent loan amount increase above the real estate damage, as verified by SBA, for improvements that will help prevent risk of future property damage caused by a similar disaster.
SBA can refinance all or part of a previous mortgage in some cases, when the applicant does not have credit available elsewhere and has suffered substantial disaster damage that is not covered by insurance.

Terms

For applicants unable to obtain credit elsewhere:

The interest rate will not exceed 4%.
The SBA will determine whether an applicant can obtain credit elsewhere.

Maturity

Up to 30 years
No pre-payment penalty or fees

Collateral requirements

Collateral is required to the extent possible for home loans over $25,000 in Presidential and Agency declarations.
Real estate is the preferred form of collateral, even if the equity is insufficient to secure the full loan amount.
SBA will ask the applicant for available collateral, but will not decline a loan for lack of collateral.

Apply Here

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