SBA Disaster Loan Applications Due July 16 (up to $500k)
NEW AID AVAILABLE FOR ANGELENOS IMPACTED BY THE HISTORIC EARLY FEBRUARY STORM, FEDERAL VIRTUAL DISASTER LOAN OUTREACH CENTER NOW OPEN
If you were affected by the rainstorms and floods from this February, the city of LA is offering Economic Injury Disaster Loans.
Loans up to $500,000 are available to homeowners to repair or replace damaged or destroyed real estate.
Homeowners and renters are eligible for up to $100,000 to repair or replace damaged or destroyed personal property, including personal vehicles.
The deadline to apply is July 16, 2024
Physical damage loans
Homeowners, renters, nonprofit organizations, and businesses of all sizes are eligible to apply for physical disaster assistance.
https://www.sba.gov/funding-programs/disaster-assistance/physical-damage-loans
Home and personal property loans
If you live in a declared disaster area and have experienced damage to your home or personal property, you may be eligible for financial assistance from SBA — even if you do not own a business. As a homeowner, renter, or personal property owner, you may apply to SBA for a loan to help you recover from a disaster.
Eligibility
Homeowners may apply for up to $500,000 to replace or repair their primary residence.
Renters and homeowners may borrow up to $100,000 to replace or repair personal property — such as clothing, furniture, cars, and appliances — damaged or destroyed in a disaster.
Secondary homes or vacation properties are not eligible for these loans. However, qualified rental properties may be eligible for assistance under SBA's business physical disaster loan program.
These loans cover disaster losses not fully covered by insurance or other sources. Proceeds from insurance coverage on home or property may be deducted from the eligible loan amount.
Use of proceeds
You may not use the funds to upgrade homes or make additions, unless required by the local building code.
You may be eligible for up to a 20% loan amount increase above the real estate damage, as verified by SBA, for improvements that will help prevent risk of future property damage.
SBA can refinance all or part of a previous mortgage in some cases, when the applicant does not have credit available elsewhere and has suffered substantial disaster damage.
Terms
First payment deferred for 12 months
No interest accrual for the first 12 months
For applicants unable to obtain credit elsewhere:
The interest rate will not exceed 4%
SBA will determine whether an applicant can obtain credit elsewhere
Maturity
Up to 30 years
No pre-payment penalty or fees
Collateral requirements
Collateral is required to the extent possible for physical damage loans over $25,000 in Presidential declarations and $14,000 in agency declarations.
Real estate is the preferred form of collateral, even if the equity is insufficient to secure the full loan amount.
SBA will ask the applicant for available collateral, but will not decline a loan for lack of collateral.
How to apply
Apply online for an SBA disaster assistance loan. https://lending.sba.gov/search-disaster/
SBA’s inspectors will estimate the cost of damage once your application is completed and submitted.
Additional information
Contact SBA's Disaster Assistance Customer Service Center at:
Phone: 800-659-2955
TTY/TRS: 711
