WASHINGTON, June 29, 2012 /PRNewswire-USNewswire/ -- Residents and businesses affected by severe storms and flooding on May 3-5, 2012 can apply for low-interest disaster loans from the U.S. Small Business Administration, SBA Administrator Karen G. Mills announced today.
Mills made the loans available in response to a letter from Michigan Gov. Rick Snyder on June 26, requesting a disaster declaration by the SBA. The declaration covers Genesee County and the neighboring counties of Lapeer, Livingston, Oakland, Saginaw, Shiawassee and Tuscola in Michigan.
"The SBA is strongly committed to providing the people of Michigan with the most effective and customer-focused response possible to assist homeowners, renters, and businesses of all sizes with federal disaster loans," said Administrator Mills. "Getting businesses and communities up and running after a disaster is our highest priority at SBA."
"Loans up to $200,000 are available to homeowners to repair or replace damaged or destroyed real estate. Homeowners and renters are eligible for loans up to $40,000 to repair or replace damaged or destroyed personal property," said Frank Skaggs, director of SBA's Field Operations Center East in Atlanta.
"Businesses and non-profit organizations of any size may borrow up to $2 million to repair or replace damaged or destroyed real estate, machinery and equipment, inventory, and other business assets," said Gerald Moore, SBA's Michigan district director.
The SBA may increase a loan up to 20 percent of the total amount of disaster damage to real estate and/or leasehold improvements, as verified by SBA, to make improvements that lessen the risk of property damage by future disasters of the same kind.
For small businesses, small agricultural cooperatives, small businesses engaged in aquaculture, and most private nonprofit organizations of all sizes, the SBA offers Economic Injury Disaster Loans (EIDLs) to help meet working capital needs caused by the disaster. EIDL assistance is available regardless of whether the business suffered any physical property damage.
Interest rates are as low as 1.938 percent for homeowners and renters, 3 percent for non-profit organizations and 4 percent for businesses with terms up to 30 years. Loan amounts and terms are set by the SBA and are based on each applicant's financial condition.
Individuals and businesses may obtain information on loan applications by calling the SBA's Customer Service Center at 800-659-2955 (800-877-8339 for the deaf and hard-of-hearing), Monday through Friday from 8 a.m. to 6 p.m., or by sending an email to [email protected]. Loan applications can also be downloaded from the SBA website at www.sba.gov. Completed applications should be mailed to: U.S. Small Business Administration, Processing and Disbursement Center, 14925 Kingsport Road, Fort Worth, TX 76155.
Those affected by the disaster may also apply for disaster loans electronically from SBA's website at https://disasterloan.sba.gov/ela/.
The filing deadline to return applications for physical property damage is August 27, 2012. The deadline to return economic injury applications is March 28, 2013.
For more information about the SBA's Disaster Loan Program, visit our website at www.sba.gov.
Contact: Kathy Cook
Phone: (404) 331-0333
SOURCE U.S. Small Business Administration