A Small Business Administration spokesperson was able to answer some questions about the SBA disaster loan process at the Coweta Community Foundation Education Forum last week.
The forum was held virtually due to COVID-19 and can be viewed on the CCF Facebook page. This week, the Next Steps Forum will also take place virtually on Facebook, without being present. It starts at 18:00 on Thursday.
SBA Disaster Loans are available to homeowners and renters affected by the declared disaster, and there are loans to repair physical damage as well as replace personal property. There are also business disaster loans, both to cover physical damage and to cover economic consequences. And people can get loans of up to 20 percent of the total damage for mitigation projects to reduce the risk of damage in future disasters.
The deadline for applying for a loan for tornado victims is March 26 – September 20.
SBA loans only pay uninsured / unreimbursed expenses. But loans can help bridge the gap between what insurance will pay and what it actually takes to get your items restored or replaced.
Personal property loans can be used to replace or repair vehicles damaged by a hurricane. However, according to Terrell Perry, a public relations officer for the SBA’s Atlanta regional office, the loan will only be paid back on the value of the car.
Loans can also cover garbage collection, she said.
Perry was unable to answer some of the more detailed questions and encouraged people to speak with a loan officer for more information.
Although the SBA is more lenient than traditional lending institutions, applicants must still have an acceptable credit history and the ability to make payments.
There are no hard and fast credit ratings. “Everyone’s story is unique and unrepeatable,” Perry said. “We encourage everyone to apply and talk about what’s going on with your application,” she said.
If you are refused, this decision may not be final.
“Refusal does not necessarily mean that you will be turned down forever,” she said. – You can call, reapply, and appeal.
“Don’t be discouraged if you get rejected,” she said. “You definitely want to make sure you research every opportunity with your SBA loan officer and ask a thousand questions.”
SBA loans are subject to change and those who are approved are not required to take out the loan. “You also don’t have to take all the money at once,” Perry said. Someone might get approval for $ 200,000 and only need $ 10,000 now, but later they find out they need more. “You can take some of the loan and put the rest on hold and then take another draw if you find you need more funds,” Perry said. You can also apply, get approved and wait up to six months to decide if you want to take out a loan.
If people are still trying to figure out what their insurance will cover, they can apply for a loan; if insurance ends up paying more than expected, the applicant must reimburse the SBA for those payments. In most natural disasters, this is a fairly common use of SBA loans as loans are approved faster than insurance payments. But it won’t be that often in Cowet, because it’s been a long time since the tornado.
Although receipts are not required to prove ownership of real estate, submit them if you have receipts. And if you have evidence of something out of the ordinary, it’s a good idea to present that as well.
For more information visit https://disasterloanassistance.sba.gov/ela/s/article/FAQ …