Dec. 1, 2011
A Message from our Executive Director:
I met with a representative from the SBA yesterday who apprised me of Direct SBA loans for Disaster Relief from Hurricane Irene and Tropical Storm Lee (see below). These loans are made directly by the U.S. SBA not commercial banks. All of Westchester County qualifies as a geographic area for Disaster Loans. There are no income limits for qualifying, that is individuals with medium and high incomes are not excluded from consideration.
I am sure you might know someone that potentially could benefit from the information contained in this e-mail. Please pass it on to them! There are deadlines for filing applications. Please see the Loan Forms for actual deadlines.
> Click here to download a PDF of the Hurrricane Irene Disaster Loan form.
> Click here to download a PDF of the Tropical Storm Lee Disaster Loan form.
Two types of loans are available.
1) Disaster Loans
a. Home Disaster Loans – loans to homeowners to repair or replace disaster damaged real estate or personal property. Renters are also eligible for personal property losses, including automobiles.
b. Business Physical Disaster Loans – Loans to businesses to repair or replace disaster damaged property including real estate, inventories, supplies, machinery and equipment. Private non-profit organizations such as churches, charities, private universities etc. are also eligible.
2) Economic Injury Disaster Loans – working capital loans to help businesses and most non profit organizations that suffered economic injury as a result of the storms. Economic injury means a loss due to the inability to open the store or organization, inability for employees or customers to access the site, business or physical damage.
Rates For Disaster Loans:
Interest rates range from 2.5% - 5% for Home Loans (depending upon ability of the applicant to access commercial credit)
Interest rates range from 4% to 6% for Business Disaster Loans (depending upon ability of the applicant to access commercial credit)
Interest rates range from 3% to 3.25% for loans to Not For Profit organizations (depending upon ability of the applicant to access commercial credit
Rates For Economic Injury Loans:
Interest rates are 4% to for Economic Injury Loans to businesses
Interest rates are 3% to for Economic Injury Loans to Not For Profit Organizations
Terms:
Loan terms range from 3 years to 30 years depending upon the ability of the applicant to access commercial credit.
Loan Amounts:
Home Loans – up to $200,000 for real estate and $40,000 for personal property, maximum amounts cannot exceed the verified uninsured disaster loss.
Business Loans – up to $2,000,000 for the repair or replacement of real estate, inventories, equipment, machinery or supplies, maximum amounts cannot exceed the verified uninsured disaster loss
Economic Injury Loans – up to $2,000,000 for alleviating economic injury, maximum amounts are limited to the economic injury less business interruption insurance and other recoveries.
Only uninsured or otherwise uncompensated disaster losses are eligible. Any insurance proceeds that are required to be applied against outstanding mortgages are not available to fund disaster repairs and do not reduce loan eligibility. However, any insurance proceeds voluntarily applied to any outstanding mortgages do reduce loan eligibility.
The SBA can also help with refinancing – please see the PDF's listed above for qualifications.
Should you have any questions concerning the SBA’s Disaster Loan Programs – please contact:
Burl Kelton
Public Information Officer
U.S. SBA
916 735-1500 Phone
916 878-1493 cell
Burl.kelton@sba.gov
Or contact 1 800 659-2995.
Thank you,
Kevin Nunn
Executive Director
