Homeowners Urged to Return Applications for SBA Disaster Loans

8/9/2019 Homeowners Urged to Return Applications for SBA Disaster Loans

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Recovery NewsHOMEOWNERS URGED TO RETURN APPLICATIONS FOR SBA DISASTER LOANS

More than 26,000 forms distributed; only 6.4 percent returned

Andover, Mass. U.S. Small Business Administration (SBA) officials have heard it all whenit comes to homeowners who tell them why they arent going to apply for a low-interestdisaster loan.

Thats why it is not surprising to hear only 1,729 of the 26,811 registered homeowners andrenters in the seven disaster counties Bristol, Essex, Middlesex, Norfolk, Plymouth, Suffolkand Worcester that have been issued SBA applications for low-interest disaster loans havereturned the forms to SBA.

Even though the SBA has approved more than $13.5 million in low-interest disaster loans and92 percent of that has gone to homeowners and renters, some homeowners and renters havemisconceptions preventing them from applying, said Kathy Cook, SBA public affairs specialist.

What she has heard and her responses are:

I want a grant, not a loan.

The average FEMA grant is approximately $2,000, and the average SBA disaster homeloan is more than $19,000, indicating many with basement flooding had significantdamage.

I dont need it, because I have insurance.

By the time people realize that their homeowners insurance policy wont covereverything, or that the basement they thought wasnt too badly damaged actually has

a bad mold infestation, it may be too late to apply to the SBA for help.

The damage to my basement wasnt that bad.

Its possible that because it hasnt been consistently warm yet in this area that the growthof mildew, a mold or fungus that can grow on everything and create a health hazard,hasnt become obvious yet.

Joint Information Center

Andover, MA

Release Date: May11, 2010DR1895NR043

FEMA news desk: 978-623-3538

MEMA Peter Judge: 508-820-2002


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(MORE)SBA DISASTER LOANS Page 2

Youre the Small Business Administration and I own a home, not a business.

People think that because the word Business is in the agencys name, that the SBA

doesnt help homeowners, but that just isnt true. SBA is a federal agency chartered byCongress to not only help businesses, but also to help homeowners repair or replacetheir disaster-damaged or destroyed homes.

More than 30,000 area residents have registered for Federal Emergency Management Agency(FEMA) assistance since the record-setting rainfall in mid-March caused severe flooding inlarge areas of Eastern and Central Massachusetts.

The deadline is May 28 and after that we cant do anything more to help, Cook said, addingthat if a homeowner fills out the application they are under no obligation to accept the loan.

Homeowners may apply for an SBA disaster loan for losses not covered by insurance. Loansmay be for up to $200,000 to repair or replace a primary residence to its pre-disaster conditionand up to $40,000 to replace damaged personal property.

The interest rate for an SBA disaster home loan can be as low as 2.625 percent, which istypically a much lower rate than a home equity loan or credit card loan. Also, SBA loans haverepayment terms that may be offered for up to 30 years and may be offered without arequirement of collateral.

Homeowners and renters unable to obtain a disaster loan from the SBA are referred to FEMAfor additional grant consideration, Cook said.

Cook urged homeowners and renters who sustained losses in the designated counties to obtainloan information and application forms by either calling SBAs Customer Service Center at(800) 659-2955 (800-877-8339 for the hearing impaired), [email protected], or visiting SBAs Web site atwww.sba.gov/services/disasterassistance.

Disaster loan information and application forms may be obtained by visiting any of theseven DRC or SBA locations. Their locations and daily hours are as follows:

Bristol County

One Government Center Masonic Lodge114 South Main St. 46 S. Washington St.

Fall River, MA 02721 North Attleboro, MA 02760Hours: Hours:Monday Saturday 9 a.m. - 7 p.m. Monday Saturday 9 a.m. 6 p.m.Closed Sunday Closed Sunday

(MORE)
mailto:[email protected]://www.sba.gov/services/disasterassistancemailto:[email protected]://www.sba.gov/services/disasterassistance


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Essex CountyClosing Wed., May 12(SBA Disaster Loan Outreach Center)

Flint Public Library1 South Main St.

Middleton, MA 01949

Hours:Monday Wednesday: 10 a.m. 7 p.m.

Middlesex County

Concord Armory91 Everett Street

Concord, MA 01742

Hours:Monday Saturday 9 a.m. 6 p.m.Closed Sunday

Norfolk County

Richard J. Koch Recreation Center1 Merrymount ParkwayQuincy, MA 02170


Plymouth County

Lakeville Free Public Library4 Precinct St.Lakeville, MA 02347


Suffolk County

Hyde Park Municipal BuildingCommunity Center1179 River Street

Boston, MA 02136Hours:Monday Saturday 9 a.m. 6 p.m.Closed Sunday

For more information about SBAs Disaster Loan Programs, visit our website at

www.sba.gov/services/disasterassistance.

FEMAs mission is to support our citizens and first responders and to ensure that as a nation we

work together to build, sustain, and improve our capability to prepare for, protect against,

respond to, recover from, and mitigate all hazards.

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SBA DISASTER LOANS Page 3
http://www.sba.gov/services/disasterassistancehttp://www.sba.gov/services/disasterassistance

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Homeowners Urged to Return Applications for SBA Disaster Loans