Government Money for Disaster Victims
It happened. Now it's time to rebuild. Get up! Do NOT let this
break your spirit!
Whether it's Hurricane Katrina or a freak accident, the
government stands ready right now to help you recover from the
disaster that devastated your home and/or your business. It
doesn't matter whether you ran a lemonade stand or a
100-employee company; whether you rented an apartment or own
what used to be a nice house.
Money to rebuild is right in front of you.
Widespread mistaken belief: SBA only provides funds for
businesses.
FACT: 80 percent of SBA low-interest disaster recovery loans
go to renters and homeowners.
Renters and homeowners can borrow up to $40,000 for personal
property losses. Homeowners may receive up to $200,000 for real
property recovery (damage to their home). Business loans for
disaster recovery can go as high as $1.5 million to repair
property and/or be used as working capital.
The loan process is extremely fast after a declared disaster,
according to Herbert Mitchell, associate administrator for SBA's
disaster assistance program. "In most cases we are able to
disburse funds in three to five days in 97 percent of the
requests that we get," he says.
In Louisiana, recent SBA loans have ranged from a low of $600 to
as high as $280,000. This illustrates the fact that no matter
what you may have lost due to disaster, you have an immediate
and effective option for money to get back on your feet and move
on with your life - starting today.
Getting the money
1. Register with FEMA. The Federal Emergency Management
Administration (FEMA) coordinates the overall federal response
to a disaster. In order to be considered for SBA disaster loan
assistance you must first register with FEMA in order to get
into the system. Two ways to get rolling: 1) call
1-800-621-FEMA (3362); or 2) go to www.fema.gov and follow the
online instructions.
FEMA will send you a package, or you can pick one up at a local
disaster recovery center (call or check the website to find one
near you).
2. Complete the package. If you have trouble, call
customer service at 1-800-659-2955 or visit a disaster recovery
center for help. The package contains FAQs and pointers to help
you fast-track your application. At these offices, loan officers
are on hand as well as customer service reps to help you
complete your application quickly and get the help you need ASAP.
The SBA's role in disaster recovery is to help renters,
homeowners, small businesses, and non-profit organizations to
get back on their feet.
You need to know that SBA loans are intended to make up the
difference between your actual assessed losses and what your
insurance company covers. In other words, if you sustained
$30,000 in losses and your insurance only covered $20,000, your
SBA loan would be considered for up to $10,000. If you were
uninsured, your SBA loan could cover your entire loss.
But the SBA recognizes that people need help fast, and insurance
money often gets delayed.
"You don't have to wait until you settle with your insurance
company," Mitchell points out. "You can apply, take an
assignment in the insurance, and then we can settle up at the
end."
Don't let a disaster take your life away. Get back on
your feet and let SBA help you build a new life. And by the way
... you may also be eligible for FEMA grant money, depending on
your circumstances!