Small Business Administration to Issue Hurricane Harvey Disaster Loans

  • September 06, 2017

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

Latest Tweets

© CMG Financial, All Rights Reserved. CMG Financial is a registered trade name of CMG Mortgage, Inc., NMLS ID #1820 in most, but not all states. CMG Mortgage, Inc. is an equal opportunity lender with corporate office located at 3160 Crow Canyon Road, Suite 400, San Ramon, CA 94583 888-264-4663. Licensed by the Department of Business Oversight under the California Residential Mortgage Lending Act No. 4150025; AK #AK1820; AZ #0903132; Colorado regulated by the Division of Real Estate; Georgia Residential Mortgage Licensee #15438; Illinois Residential Mortgage Licensee; Kansas Licensed Mortgage Company #MC.0001160; Massachusetts Mortgage Lender License #MC1820 and Mortgage Broker License #MC1820; Mississippi Licensed Mortgage Company Licensed by the Mississippi Department of Banking and Consumer Finance; Licensed by the New Hampshire Banking Department; Licensed by the NJ Department of Banking and Insurance; Licensed Mortgage Banker – NYS Department of Financial Services; Ohio Mortgage Broker Act Mortgage Banker Exemption #MBMB.850204.000; Licensed by the Oregon Division of Financial Regulation #ML-3000; Rhode Island Licensed Lender #20142986LL; and Licensed by the Virginia State Corporation Commission #MC-5521. CMG Mortgage, Inc. is licensed in all 50 states and the District of Columbia. Offer of credit is subject to credit approval. For information about our company, please visit us at www.cmgfi.com. To verify our complete list of state licenses, please visit www.cmgfi.com/corporate/licensing and NMLS Consumer Access (www.nmlsconsumeraccess.org).