Tornado Recovery: Agencies Provide Guidance For Financial Assistance
As storm survivors begin to rebuild, the Federal Emergency Management Agency, U.S. Small Business Administration and Lee County Emergency Management Agency are stressing the importance of applying for financial assistance and understanding the process before the May 6 application deadline.
"We've been concerned about numbers being low," Lee County EMA public information officer Rita Smith said. "Some of the folks that have gone to hotels that the families have helped to pay for have split the cost as those funds are running out, so we had an influx of calls saying, 'What do we do?'"
After financial contributions have dwindled, survivors are interested in securing assistance from FEMA.
Representatives from each agency and administration want to address misconceptions and concerns before Smiths Station and Beauregard residents visit the disaster recovery centers in Providence Baptist and Mount Olive Baptist churches or contact FEMA at 800-621-3362 to apply.
"Insurance is still first for us as well as SBA because we, nor they, can't duplicate what you get from your insurance company," FEMA media relations manager Mike Wade said. "They are helping you with your uninsured losses, as we are. Once you settle with your insurance company, we'll be able to provide you additional money for your uninsured losses. The only thing we don't pay for are your deductibles."
A payable option
According to Wade, FEMA financial assistance will ensure living conditions are inhabitable, safe and accommodate basic needs for sustainable life.
But the next step recommended by the federal agency is to pay for other extensive property damages such as landscaping, insurance deductibles, vehicles, uninsured personal items or storm shelters by applying for an income-based, four-month-deferred loan from SBA.
"When they get an application from SBA, they need to fill that out and go through that process to see if they are eligible for a loan," Wade said. "If they are not, SBA refers them back to FEMA, and we'll consider getting them some money for personal property, a vehicle or things like that. People say, 'I don't want a loan. I want the money I get from FEMA,' but it is a process. We don't want to leave people out as they fail to do that."
As survivors attempt to pay the damages, seek assistance and secure necessities to live, Wade and SBA public affairs specialist Julie Garrett said the term "loan" has a disconcerting connotation. But with interest rates as low as 2.1 percent for insured and uninsured homeowners without credit and 4.1 percent for individuals with credit, the program is primarily designed to assist survivors of a natural disaster.
"It doesn't ding their credit to apply," Garrett said. "Our (requirements), their credit report and all of that is not as high as qualifying from a commercial bank loan. It's a little more forgiving than that. But they still must demonstrate the ability and willingness to repay the loan. They are still going to pull their credit report, meet minimal income guidelines, but it's not as high."
Once survivors apply for the loan to pay damages in homes, businesses or nonprofits, they have 60 days to decide if the loan is needed. As other financial challenges arise, the loan can be obtained in two to three weeks.
"If they don't take it initially and decline it, they have six months to reapply for that loan because they are in the system," Garrett said. "So if something happens later, they can go back and apply for it again. There is no collateral required if it is $25,000 or less. When they get an insurance check eventually, they can use that check to pay down their loan."
Read the entire letter
Wade and Garrett stressed the importance of reading the entirety of a determination letter if FEMA or SBA financial assistance is denied. Most denials derive from a lack of or miswritten information, they said.
"If somebody is denied a loan, they also should read down through their letter because sometimes they forgot to submit something, an initial was off or their Social Security (number) was off by a digit," Garrett said. "There can be little things that can impact your loan."
Wielding a form of identification for the application process, survivors can also apply for a loan through the SBA's business recovery center at Technical Building 7 on the first floor in Classroom 5 of Southern Union State Community College.
If a survivor is completely denied, they can still be referred back to FEMA, be considered for their eligiblity to receive finances for temporary housing and FEMA will notify volunteers to serve their uncovered needs.
"We saw an increase with the disaster recovery centers and the Red Cross going to them because we had people without transportation," Smith said. "They were going to them and saying, 'Okay. What do you need? We'll bring it to you. We'll get you taken care of.' That's the next phase here that we are seeing, and then, we're going into the long-term recovery process."
Red Cross registration
Smith reiterated the crucial need for newly-purchased donations such as clothes and towels as recovery options in the future.
District 4 Lee County Commissioner Robert Ham recommended survivors register with the Red Cross after applying for financial assistance through FEMA and the SBA.
"We are not overwhelmed," Ham said. "We are absolutely out there working hard, and we are encouraged by the people who have come for help and want to help the ones that still need help. My phone number is 334-319-0691. I'm okay with people calling me if they need help, and I will help send them in the right direction of these professionals."
Smith provided the EMA phone number as well, 334-749-8161.
"I feel sorry for those, especially our elderly group, who have voicemail, smart phones and social media, and they are trying to figure out things," Smith said. "They want to call the old-fashioned way and talk to someone in person. They want to know your name, who you are and what you can do to help them. That's what we are there for. We'll make sure they get to, not just FEMA, but I'll get them to...the person they need to talk to."
The Lee County EMA has scheduled a town workshop at Smiths Station Baptist Church on Monday, March 25 at 6 p.m. Eastern, and storm survivors from Smiths Station and Beauregard are encouraged to attend.
Need for flood insurance could change with update to FEMA maps
Advisor News
Annuity News
Health/Employee Benefits News
Life Insurance News