No teletrack loans may not be enough to help victims of the recent tornados in the U.S. to rebuild. The Small Business Administration (SBA), a government agency normally associated with businesses, is offering assistance to homeowners affected by the tornados that ripped through various areas of the U.S. in April. This financing is welcomed by residents who suffered damage or lost their homes.
According to SBA Public Affairs Specialist Richard Daigle, the agency has worked with homeowners in the past, offering financial relief following a disaster. He said that money provided by the Federal Emergency Management Association (FEMA) and an insurance company is not enough for many homeowners.
In this case, they should know that the SBA is there to lend additional support.
Low interest loans offered by the SBA for disaster reasons range up to $200,000. Homeowners can use this money to repair or replace real estate that was damaged or destroyed. Renters can also take advantage of disaster relief funding.
Homeowners and renters may qualify for as much as $40,000 to repair or replace personal property damaged or destroyed by a disaster.
Up to $2 million in financing is available to a private non-profit organization or business that needs to replace its equipment, inventory, property, or other business assets following an event like the recent tornados. Included in some of these business loans is economic loss stemming from a delay in reopening.
Also covered is compensation for loss in suppliers and customers.
When a home or business is underinsured or personal property is uninsured, these loans can be especially helpful. Victims of damage should apply for loan from the SBA at the same time they file a claim with their insurance company and apply for disaster money from FEMA.
People who are denied an SBA loan can then approach FEMA for additional grant dollars.
