OKLAHOMA DEPARTMENT OF EMERGENCY MANAGEMENT
FEDERAL EMERGENCY MANAGEMENT AGENCY
US SMALL BUSINESS ADMINISTRATION
May 3, 2011
COMPLETING SBA LOAN APPLICATION IS KEY TO FULL DISASTER ASSISTANCE
OKLAHOMA CITY — Oklahomans in Atoka County who suffered damage or loss from the April 14 tornado and received a loan application from the U.S. Small Business Administration (SBA) are urged to complete and return the application. Doing so will ensure the applicants are considered for the full range of disaster assistance options that may be available to them.
SBA serves as the federal government’s primary source of money for the long-term rebuilding of disaster-damaged private property. SBA helps homeowners, renters, businesses and private non-profit organizations to fund repair or rebuilding efforts and cover the cost of replacing lost or disaster-damaged personal property.
Homeowners may borrow up to $200,000 — with interest rates as low as 2.563 percent — for the repair or replacement of their primary residence not fully compensated by insurance. Homeowners and renters may also borrow up to $40,000 at the same interest rate for replacement of personal property, including vehicles.
Businesses and non-profit organizations may apply to borrow up to $2 million — at interest rates as low as 3 percent for non-profits and 4 percent for businesses — for the following:
- Loans to repair damage to real estate, machinery, equipment, inventory and supplies.
- Economic injury loans (for small businesses and most private non-profits) to help provide working capital to recover from the disaster’s economic impact.
Homeowners and renters who apply for an SBA loan and who are declined, as well as those who are not issued a loan application, may be referred to the Federal Emergency Management Agency’s (FEMA) Other Needs Assistance (ONA) grant program. Homeowners and renters must return the SBA application, if they receive one, to be considered for ONA.
ONA provides reimbursements for personal property losses, vehicle repair or replacement, moving and storage fees and other serious disaster-related expenses not covered by insurance or other sources. FEMA may also provide grants to help pay for temporary housing and essential home repairs.
Other SBA loan application facts:
- The application should be completed even if an individual does not want a loan or believes he or she does not qualify for one. Determination for additional assistance cannot be made until the application is submitted; registrants should complete applications as soon as possible.
- FEMA will process applications for housing assistance regardless of whether the applicant has applied for an SBA loan.
- Insured residents do not have to wait for an insurance settlement to apply to SBA.
- Completing an SBA application does not guarantee approval for a loan.
- Completing the loan application does not obligate anyone to accept a loan.
SBA specialists are working at the federal-state Disaster Recovery Center (DRC) that is operating in Tushka. At the center, SBA Customer Service Representatives can answer questions regarding the SBA loan process, help residents fill out applications for low-interest disaster loans, and accept completed forms.
Those with questions on the status of their FEMA application may call FEMA at 800-621-3362, TTY 800-462-7585 or click www.disasterassistance.gov.