Flood loan applications due Nov. 24
Washington — The Small Business Administration said Friday homeowners and renters seeking low-interest loans for damage from the Aug. 11-13 storms in Metro Detroit have until Nov. 24 to apply for assistance.
President Barack Obama approved Thursday a disaster declaration for Macomb, Oakland and Wayne counties for the Aug. 11-13 flooding that caused an estimated $1.1 billion or more in damage and damaged 118,000 homes and businesses.
People must apply for physical disaster loans by Nov. 24. They include loans “to homeowners or renters to repair or replace disaster-damaged real estate or personal property owned by the victim. Renters are eligible for their personal property losses, including automobiles.”
Also covered are nonprofit groups or businesses of any size to “repair or replace disaster-damaged property,” including real estate, inventories, supplies, machinery and equipment.
Businesses have until June 25 to apply for economic injury disaster loans. “Working capital loans to help small businesses, small agricultural cooperatives, small businesses engaged in aquaculture, and most private, non-profit organizations of all sizes meet their ordinary and necessary financial obligations that cannot be met as a direct result of the disaster,” the SBA said.
People seeking assistance must have an acceptable credit history and demonstrate they can repay loans.
“Collateral is required for physical loss loans over $25,000 and all (economic injury) loans over $25,000. SBA takes real estate as collateral when it is available. SBA will not decline a loan for lack of collateral, but requires you to pledge what is available,” the agency said.
Interest rates range from 2.06 percent to 4.13 percent for home loans, 4-6 percent for business loans and 2.63 percent for non-profit loans.
The loans allow up to 30 years to repay, but some business loans are only approved for up to 7 years. Home loans are for up to $200,000 for repair or replacement and up to $40,000 for personal property. Business loans are for up to $2 million.
“Only uninsured or otherwise uncompensated disaster losses are eligible. Any insurance proceeds which are required to be applied against outstanding mortgages are not available to fund disaster repairs and do not reduce loan eligibility. However, any insurance proceeds voluntarily applied to any outstanding mortgages do reduce loan eligibility,” the SBA said. “Secondary homes, personal pleasure boats, airplanes, recreational vehicles and similar property are not eligible, unless used for business purposes. Property such as antiques and collections are eligible only to the extent of their functional value. Amounts for landscaping, swimming pools, etc., are limited.”
For more information, contact SBA’s Disaster Assistance Customer Service Center at (800) 659-2955, email firstname.lastname@example.org or visit SBA’s website at www.sba.gov/disaster. Applicants may also apply online using an electronic application via SBA’s website at https://disasterloan.sba.gov/ela.