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NOTE: For disaster recovery loans always check with private lenders in your area before accepting any SBA loan. Government loans secured by US Taxpayers cannot be reimbursed and will count as a duplication of benefits if the loan is provided for the same services as other federal dollars such as grants which do not have to be repaid. Most private lenders who offer disaster loans know your loan may be eligible for reimbursement as well as savings and retirement funds. Be sure to contact your states housing department for more details.
SBA Disaster loans for low-income businesses with real property that have filed for FEMA assistance and applied to the SBA for a disaster loan and have been denied or have not signed the LA&A may be eligible for a HUD grant under the economic revitalization program. You will need to have a damage assessment from FEMA or the SBA.
HUD calculates the median real estate and content loss by the following damage categories for each state:
- Category 1: Real estate + content loss = below $12,000
- Category 2: Real estate + content loss = $12,000-$29,999
- Category 3: Real estate + content loss = $30,000-$64,999
- Category 4: Real estate + content loss = $65,000-$149,999
- Category 5: Real estate + content loss = $150,000 and above
For properties with real estate and content loss of $30,000 or more, HUD calculates the estimated amount of unmet needs for small businesses by multiplying the median damage estimates for the categories above by the number of small businesses denied an SBA loan, including those denied a loan prior to inspection due to inadequate credit or income (or a decision had not been made), under the assumption that damage among those denied at pre-inspection have the same distribution of damage as those denied after inspection.
Your state community development or housing authority will have all the HUD small business programs available to you documented. Every state will manage the programs differently and may have set eligibility levels different from what HUD originally published.
Low-income business owners who own a building (real property) that is in the major disaster area and do not have insurance or are under-insured should research this program before adding additional disaster debt with an SBA loan.