Don’t Wait for Insurance Settlement to Apply for SBA Low-Interest Loans

ATLANTA, Feb. 6 -- The Small Business Administration's Office of Disaster Assistance issued the following news release:

The U.S. Small Business Administration (SBA) is encouraging those affected by the severe storms, tornadoes, straight-line winds and flooding in Mississippi to submit their completed applications, even if they have not settled with their insurance company.

"Waiting to file an SBA application could cause unnecessary delays in receiving disaster assistance, and survivors may miss the application deadline. Returning the loan application is an essential part of the disaster recovery process," said Frank Skaggs, director of SBA Field Operations Center East.

If a survivor does 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.

Physical disaster loans are available to businesses of all sizes, nonprofit organizations, homeowners and renters, to repair or replace disaster-damaged property, including contents and automobiles. Economic Injury Disaster Loans are available for small businesses, small agricultural cooperatives, small businesses engaged in aquaculture and most private nonprofit organizations of all sizes having difficulties meeting operating expenses because of the disaster.

Interest rates are as low as 3.125 percent for businesses, 2.5 percent for nonprofit organizations and 1.5 percent for homeowners and renters, with terms up to 30 years. Loan amounts and terms are set by the SBA and are based on each applicant's financial condition.

Applicants may apply online using the Electronic Loan Application (ELA) via SBA's secure website at https://disasterloan.sba.gov/ela.

To be considered for all forms of disaster assistance, applicants should register online at www.DisasterAssistance.gov or download the FEMA mobile app. If online or mobile access is unavailable, applicants should call the FEMA toll-free helpline at 800-621-3362. Those who use 711-Relay or Video Relay Services should call 800-621-3362.

Additional details on the locations of Disaster Recovery Centers and the loan application process can be obtained by calling the SBA Customer Service Center at 800-659-2955 (800-877-8339 for the deaf and hard-of-hearing) or by sending an e-mail to disastercustomerservice@sba.gov.

The filing deadline to return applications for physical property damage is March 27, 2017. The deadline to return economic injury applications is Oct. 25, 2017.

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