FEMA: Disaster Loan Packages Slow To Return

NASHVILLE – The number of disaster recovery loan packages returned by flood survivors is alarmingly low, according to recovery officials. More than 23,500 loan applications from the U. S. Small Business Administration (SBA) have been sent to Tennessee households who have applied for assistance through the Federal Emergency Management Agency’s (FEMA) registration line. Of those, only 664 loan applications have been returned.

 

What individuals may not know is that the SBA disaster loan application is absolutely essential to their recovery. Low interest loans from the SBA are the primary funding source to assist eligible homeowners to return their property to its pre-disaster condition.

 

If you have questions about the SBA loan process, you can talk with SBA representatives at any open Disaster Recovery Center (DRCs) operating in Cheatham, Davidson (3 locations), Dyer, Haywood, Hickman, McNairy, Montgomery, Shelby, Sumner, Tipton, or Williamson counties. More DRCs will be opening in other affected counties in the near future.

 

Applicants can also turn in their loan package at any DRC. Representatives of the SBA will send completed applications overnight to the SBA office for processing.

 

Interest rates as low as 2.75 percent for homeowners and renters and as low as 4 percent for businesses, coupled with payment terms as long as 30 years, are intended to make the loans affordable. Being approved for a loan does not obligate applicants to accept it. And for those who do not qualify for a loan, additional FEMA assistance may be available.

 

Homeowners can borrow up to $200,000 to repair or replace their primary residence. Homeowners and renters can borrow up to $40,000 to replace personal property.

 

Homeowners, renters, non-profit organizations and businesses of all sizes can apply for SBA loans to pay for recovery costs not covered by insurance or other sources. People with home-based businesses or rental property who have been affected by the floods may also be eligible for SBA loans.

 

Before applying for a SBA loan, you must register with FEMA either online at www.DisasterAssistance.gov or by calling 800-621-FEMA (3362) or TTY 800-462-7585 for those with speech and hearing disabilities. The toll-free numbers are staffed every day from 7 a.m. to 10 p.m.

 

 

 

 

FEMA leads and supports the nation in a risk-based, comprehensive emergency management system of preparedness, protection, response, recovery, and mitigation, to reduce the loss of life and property and protect the nation from all hazards including natural disasters, acts of terrorism, and other man-made disasters.

 

Disaster recovery assistance is available without regard to race, color, religion, nationality, sex, age, disability, English proficiency or economic status. If you or someone you know has been discriminated against, call FEMA toll-free at 800-621-FEMA (3362). For TTY call 800-462-7585.

 

FEMA’s temporary housing assistance and grants for public transportation expenses, medical and dental expenses, and funeral and burial expenses do not require individuals to apply for an SBA loan. However, applicants who receive SBA loan applications must submit them to SBA loan officers to be eligible for assistance that covers personal property, vehicle repair or replacement, and moving and storage expenses.