Federal SBA loans available to victims of recent flooding

Published 12:00 am Saturday, January 23, 2010

SACRAMENTO, Calif. – U. S. Small Business Administration Administrator Karen G. Mills announced low-interest federal disaster loans are now available for residents and business owners affected by the severe weather and flooding that struck from Dec. 10 through Dec. 18, 2009. SBA acted under its own authority to declare a disaster in response to a request received from Gov. Bobby Jindal on Jan. 11.

The disaster declaration makes SBA assistance available in Lafourche Parish and the neighboring parishes of Assumption, Jefferson, St. Charles, St. James, St. John the Baptist and Terrebonne.

“The U. S. Small Business Administration is strongly committed to providing the most effective and customer-focused response possible to assist Louisiana residents and businesses with federal disaster loans,” said Mills. “Getting our businesses and communities up and running after a disaster is our highest priority at SBA.”

“Low-interest federal disaster loans are available to homeowners, renters, businesses of all sizes and private, non-profit organizations whose property was damaged or destroyed by the disaster,” said Michael W. Ricks, SBA’s Louisiana district director.

According to Ricks, SBA customer service representatives will be on hand at the SBA Disaster Loan Outreach Center at the Mathews Government Complex (the old Wal-Mart building) at 4876 Highway 1, Mathews, La., Monday through Friday from 8 a.m. to 4 p.m. until Feb. 4 to issue loan applications, answer questions about SBA’s disaster loan program, explain the application process and help each individual complete their application. No appointment is necessary.

Disaster loans up to $200,000 are available to homeowners to repair or replace damaged or destroyed real estate. Homeowners and renters are eligible for up to $40,000 to repair or replace damaged or destroyed personal property.

Businesses of all sizes and private, non-profit organizations may borrow up to $2 million to repair or replace damaged or destroyed real estate, machinery and equipment, inventory and other business assets. SBA can also lend additional funds to homeowners and businesses to help with the cost of making improvements that protect, prevent or minimize the same type of disaster damage from occurring in the future.

For small businesses and most private, non-profit organizations of any size, SBA offers Economic Injury Disaster Loans to help meet working capital needs caused by the disaster. EIDL assistance is available regardless of whether the business suffered any property damage.

Interest rates can be as low as 2.562 percent for homeowners and 4 percent for businesses with terms up to 30 years. Loan amounts and terms are set by SBA and are based on each applicant’s financial condition.

Disaster loan information and application forms are also available from SBA’s Customer Service Center by calling SBA toll-free at 800-659 2955, e-mailing disastercustomerservice@sba.gov or visiting SBA’s Web site at www.sba.gov/services/disasterassistance. Hearing impaired individuals may call 800-877 8339. Applicants may apply online using the Electronic Loan Application via SBA’s secure Web site at https://disasterloan.sba.gov/ela.

The filing deadline to return applications for property damage is March 15, 2010. The deadline to return economic injury applications is Oct. 14, 2010.