SBA’s Matthew loans not just for businesses

Dec. 26--From the time Hurricane Matthew made landfall in October to the time the flood waters receded, more than 100,000 homes, businesses and government buildings in North Carolina sustained damage, according to weather.com.

Nearly 50 percent of the counties in the state were named eligible for FEMA Public Assistance grants for permanent repair and replacement of disaster-damaged infrastructure resulting from Hurricane Matthew, according to a FEMA news release.

The clock is ticking on application deadlines for U.S. Small Business Administration loans that can help close the gap between insurance benefits and FEMA payouts for renters, homeowners, nonprofits and business owners.

SBA federal Economic Injury Disaster Loans are available to small businesses, small agricultural cooperatives, small businesses engaged in aquaculture, and private nonprofit organizations.

"We've got a looming deadline of January 9, which is coming up very soon," SBA Public Affairs Specialist Greg Dawson said. "The first thing anyone does if they're impacted by the disaster is register with FEMA."

Homeowners and renters who register with FEMA receive an SBA application in the mail.

"Typically, by the name of our organization, most folks see it and say, 'Here's that crazy government sending me something, I'm not a small business,'" Dawson said. "They toss it in File 13, a critical mistake. All federal assistance will cease if they don't go through the process of completing that application."

Everyone does not qualify for an SBA loan. Those who do not qualify are referred back to FEMA for FEMA's Other Needs Assistance Program, which provides grant dollars. Individuals must go through the SBA application process to be considered for FEMA's Other Needs Assistance Program grants.

"We're trying to push that message to understand if you get that SBA application in the mail, you need to complete it or all federal assistance will cease," Dawson said.

SBA partners with FEMA on all presidentially declared disasters making low-interest loans available to homeowners, renters, nonprofit organizations and businesses.

Homeowners can borrow up to $200,000 with an interest rate as low as 1.563 percent; renters can borrow up to $40,000 with the same interest rate to cover lost content including automobiles.

Nonprofit organizations can borrow up to $2 million with an interest rate as low as 2.625 percent, and businesses can borrow up to $2 million as low as 4 percent.

Interest rates are fixed for the term of the loan, and the law authorizes loan terms up to 30 years but businesses with credit available elsewhere are subject to a maximum seven-year term.

The deadline to apply for physical damage assistance is Jan. 9, 2017. The deadline to apply for economic injury assistance is July 10, 2017.

Visit disasterloan.sba.gov/ela to apply for a SBA Disaster Loan.

Contact Jennifer Cannon at 252-635-5671. Follow her on Twitter at JCannonNBSJ.

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