FEMA - Federal Emergency Management Agency

06/04/2024 | Press release | Distributed by Public on 06/04/2024 14:30

Ohioans Affected by March 14 Tornadoes: Key Reasons to Fill Out an SBA Application

COLUMBUS - FEMA partners with other agencies, such as The U.S. Small Business Administration (SBA), to help meet the needs of disaster survivors. If you are a homeowner, renter or business owner affected by the March 14 tornadoes, SBA may be able to offer a low-interest disaster loan to support your recovery.

After you apply for FEMA assistance, don't wait to apply for a loan from the SBA too. You aren't required to apply for a SBA loan to be considered for FEMA grants, but an SBA loan could help with any unmet needs for disaster-related expenses.

Individuals in one of Ohio's designated counties, whose homes and property were damaged by the March 14 tornadoes, have until July 1 to apply for assistance from FEMA and the SBA.

SBA programs can help homeowners and renters, as well as large and small businesses (including apartment owners) and nonprofit agencies.

Homeowners may be eligible for up to $500,000 in low-interest loans to repair or replace their home. Renters and homeowners who lost personal goods in the disaster may be eligible to borrow up to $100,000 to replace the things they need like clothing or furniture - even a vehicle.

If you are a business owner in one of Ohio's designated counties who was affected by the March 14 tornadoes and are in need of assistance following the disaster, there is a good chance the SBA can help, but you must apply first.

Low-interest disaster rates are available.

SBA can offer a loan that fits your personal budget. For applicants unable to obtain credit elsewhere, the interest rates are 2.5 % for home loans, 4.0% for business loans and 2.375% for nonprofit organizations. Your first payment will not be due for 12 months, and no interest will be charged for the twelve months. You may have up to 30 years to pay and there is no pre-payment penalty or fees.

If you already have a mortgage on damaged property, SBA specialists can help with a low-interest loan you can afford. In some cases, SBA can refinance all or part of an existing mortgage.

SBA is the largest source of recovery funds.

SBA disaster loans are the largest source of federal disaster recovery funds for survivors. SBA disaster loans cover losses not fully compensated by insurance, FEMA grants or other resources. Survivors should not wait for an insurance settlement before submitting an SBA loan application. They may discover they were underinsured for the deductible or labor and materials required to repair or replace their home.

Funds to reduce future disaster risks may be available.

Eligible SBA disaster loan borrowers may choose to receive expanded funding to help mitigate their home or business against future disasters. SBA disaster loans can be increased up to 20% to make building upgrades.

Whether you're recovering from a declared disaster or planning ahead and thinking about how to protect your home and family, business, and employees, mitigation assistance not only helps you rebuild and get back to business, but the money can also be used to make property improvements that eliminate future damage or save lives.

SBA approval of mitigating measures is required before any loan increase can be made. There is no cost to apply, and you are under no obligation to accept a loan if approved.

Even simple things can strengthen your home or business today to avoid damage and unplanned costs in the future.

Learn more about SBA disaster assistance a www.sba.gov/funding-programs/disaster-assistance. Visit www.fema.gov/disaster/4777for more information about the disaster recovery in Ohio.