Small Business Administration to Issue Hurricane Harvey Disaster Loans
Earlier this week, Houston’s mayor announced that many Houston-area businesses are starting to reopen. With floodwaters receding, Houston residents are returning home also. The Small Business Administration (SBA) is actively coordinating with other federal agencies like the Federal Emergency Management Agency (FEMA), the Department of Homeland Security, and the Department of Housing and Urban Development (HUD) to distribute loans to aid hurricane victims. The agency announced it would distribute $3.3 billion in disaster loan funds to help uninsured residents and business owners rebuild.
The advantage of SBA loan is that they carry low-interest rates and can be financed long-term. Interest rates range as low as 1.75-6.61% depending on the creditworthiness of the applicant. The SBA can issue loans up to $25,000, without any collateral. In the case of business loans, there is a limit of $2 million for repair and replacement of property. For home loans, there is a $200,000 limit for the repair and replacement of the house and a $40,000 limit for personal property.
According to the Consumer Federation of America’s director of Insurance, Robert Hunter, only about 20% of Houston homeowners have adequate insurance coverage to cover the hurricane damage. The SBA has already issued $1.5 million in loans to hurricane victims.
Linda McMahon, the SBA administrator, said the agency is prepared to process up 100,000 applications over the next month. If you or someone you know was impacted by Hurricane Harvey, you can apply for a loan here.
Sources: Fort Worth Star-Telegram, HousingWire