If you lost your property in a natural disaster, you may be eligible for disaster assistance SBA loans. These loans can help you fill the gap that your insurance won’t pay. Here’s what you need to know about these loans.
Submit SBA Loan Application Before Settlement
For real estate property that is destroyed during a hurricane or other disaster, you can use an SBA low-interest disaster loan. Often, if you register with FEMA, they will refer to you to the SBA. The SBA determines if you can qualify for a loan. While you don’t have to accept it, you want to complete the application so that you can keep your options open, no matter what happens.
You never want to wait until the last minute or until after the insurance settlement. Your insurance settlement might end up short of what you need. If you’re underinsured, you could end up having to pay more than you planned for out of pocket. With an SBA loan, you can cover the gap that your insurance doesn’t pay.
SBA Assistance Benefits
When it comes to SBA Assistance benefits, homeowners and renters can submit SBA loans applications for up to 200,000 dollars. They can use this money for primary residence structural repairs or for rebuilding. In addition, during flooding, you can repair a flood-damaged basement or other real property. Keep in mind that the real property that you can fix has to support the function of the home. For instance, repair or replace the furnace, pump or water heater.
In addition to fixing your home after a disaster, you may even apply for up to 40,000 dollars to repair or replace important property. For instance, if your vehicle is damaged due to a storm or natural disaster, you may be able to replace it. Disaster assistance is designed to help you with what you need.
If you run a small business or non-profit organization, then you can receive up to 2,000,000 dollars to repair or replace your real estate or other assets. Eligible non-profits and small businesses may apply for economic injury disaster loans that help meet working capital needs. Also, you may be eligible for a loan amount increase for mitigation purposes. This may include building a safe room or storm shelter to help from future damage from another disaster.
Natural disasters can cause a serious hit to small businesses, non-profit and even personal residences. It’s crucial that you consider all of your options. SBA loans might not be what comes to mind first, but if FEMA refers you, then it’s smart to look into it.