SBA disaster loans available to homeowners, renters

James Beaty, McAlester News-Capital, Okla.
·4 min read

Mar. 20—Low-interest federal disaster response loans through the federal Small Business Administration are open to more than those who own or operate their own business.

SBA loans are available to qualifying homeowners, renters and private nonprofit business organizations as well.

That's one of the messages the SBA wants to get to local residents as the SBA works with the Federal Emergency Management Agency, also know as FEMA, to try and get disaster relief to those with damages or other losses related to the February winter storms.

"We have low interest loans for homeowners and renters as well as for businesses of all sizes," said Louise K. Porter, an SBA rep working through a virtual recovery center open for Oklahoma businesses and residents affected by the severe winter storms which occurred Feb. 8 through Feb. 20, 2021.

Interest rates on the SBA loans are as low as 1.250%, Porter said.

Some have already began the process, which usually begins by registering with FEMA, so a FEMA registration number can be assigned.

As of early Friday, there were 83 FEMA registrations in Pittsburg County and 42 have been referred to the SBA for home and personal property damage, Porter said.

Statewide, there had been 3,484 FEMA registrations and 1,937 of those have been referred to the SBA around mid-morning on Friday.

A little more than a month is left to apply. The deadline to apply for an SBA loan and to register with FEMA to begin the process is April 26, Porter noted.

Based on information provided, "SBA makes an estimate as to how much damage somebody has and the size of a potential loan," Porter said. "Everyone's situation is different."

For individuals and families, the program offers loans of up to $200,000 for homeowners to repair or replace real estate damage and up to $40,000 to replace personal property.

Renters may qualify for up to $40,000 to repair or replace personal property.

Businesses and nonprofit organizations can potentially borrow up to $2 million to repair or replace real estate, machinery and equipment, inventory and other assets that were damaged or destroyed.

Economic injury loans are also available, because of economic losses resulting from the winter storms. Those are only for small businesses and most non-profit organizations suffering adverse financial impacts from the disaster, with or without property loss. Up to $2 million may be available for working capital to assist in paying financial obligations until normal operations resume, according to information provided by Porter.

Porter related how the FEMA and the SBA are working together.

When people register with FEMA for their physical damages they may get referred to the SBA for a potential loan. If they are approved, a loan is an option.

Even applicants who are turned down for a loan may be eligible for additional grant funds from FEMA.

Porter acknowledged the process can sometimes be confusing for applicants. She urged those who begin an application to complete them and submit them, so there will be a record of damages. Even if an SBA loan is declined, there will be a record of damages resulting from the winter storm, which could aid federal workers in trying to find another outlet for assistance .

Helpful contact numbers supplied by Porter include:

—The Virtual Business Recovery Center and Virtual Disaster Loan Outreach Center at 1-800 659-2955, with hours from 7 a.m. until 7 p.m. Central Daylight Time on Monday through Friday. The site can be reached through email at FOCWAssitance@sba.gov.

Also, Pittsburg County residents and other Oklahomans impacted by the February winter storms can make it easier to communicate with FEMA and the SBA by creating an online account. That enables users to upload documents and check the status of applications from anyplace with an internet connection.

Porter said the one-stop site to begin the process is available at DisasterAssistance.gov, or by calling the FEMA Helpline at 1-800-621-3362. The TTY number is 1-800-462-7585, with hours of operations from 6 a.m. to 10 p.m., Central Time.

Information provided by Porter says to download the FEMA app as follows:

—On Apple devices: text APPLE to 43362.

—On Android devices: text ANDROID to 43362.

—Visit fema.gov/about/news-multimedia/app.

Applying online or through the FEMA app is available 24 hours a day, according to the agency.

Those who need a reasonable accommodation or assistance filling out a FEMA application can phone 1-800-621-3362 or TTY 1-800-462-7585.

Contact James Beaty jbeaty@mcalesternews.com.