Small Business Administration and Katrina loans
Tuesday, March 27, 2007 | link
If you are recovering from the hurricanes of the Gulf Coast, here is some new information from the Small Business Administration regarding loan disbursements. If you're trying to rebuild your practice, this may help:SBA Fully Disburses 100,000th Disaster Recovery Loan to Gulf Coast
WASHINGTON – More than 100,000 disaster loans have been fully disbursed by
the U.S. Small Business Administration, totaling $4.8 billion to Gulf Coast
residents who suffered losses in the aftermath of Hurricanes Katrina, Rita
and Wilma, the agency announced this week. SBA has now disbursed three-
quarters of the total amount approved for borrowers rebuilding from the
Gulf hurricanes. Including loans that have been partially disbursed, the
agency has made full or partial disbursements on 98 percent of the net
approved loans, for a total of $5.3 billion.
Operational reforms in SBA’s disaster loan program rolled out last June
contributed substantially to the quicker disbursement of disaster loan
funds.
“Last summer we moved 1,300 staff and revamped their work flow, forming
teams that integrated loan processing, decision making and legal
functions,” said SBA Administrator Steven Preston. “We also contacted
90,000 borrowers in the Gulf to introduce them to the new process, while
creating more consistent dialog with our customers through the
implementation of case managers for each loan applicant. The full
disbursement of SBA disaster loan funds will go a long ways towards
rebuilding the region, one homeowner and one business at a time.”
Preston also said additional enhancements to the disaster loan program,
which include ongoing reform of the disaster loan process, improving
automation, and developing a detailed playbook for future large scale
disasters, are underway.
The SBA has approved a net of almost 120,000 disaster loans totaling $7.13
billion in the aftermath of the Gulf Coast hurricanes. The vast majority of
the remaining borrowers have drawn on some of their SBA-approved disaster
loans. Home loans disbursed in the region total $4.23 billion, while $1.16
billion has been disbursed to businesses.
The SBA makes low-interest loans to homeowners, renters and non-farm
businesses of all sizes following a Presidential disaster declaration.
Homeowners may borrow up to $200,000 to repair or replace damaged real
estate. Individuals may borrow up to $40,000 to cover losses to personal
property.
Non-farm businesses and non-profit organizations of any size may apply for
up to $1.5 million to repair or replace disaster damaged business assets
and real property. Small businesses that suffered economic losses as a
direct result of the declared disaster may apply for a working capital loan
of up to $1.5 million, even if the property was not physically damaged.
Disaster loan borrowers who have questions should call SBA’s Customer
Service Center at 1-800-659-2955, or send an e-mail to
disastercustomerservice@sba.gov. The Center handled over two million calls
in response to the Gulf Coast Hurricanes.
To learn more about the SBA’s disaster assistance program visit the Web
site at www.sba.gov/disaster.