The Small Business Administration (SBA) offers low-interest, long-term federal disaster loans for businesses of all sizes, homeowners, renters, and non-profits to help them recover from last month’s tornados and storms. Completing a disaster loan application is part of the process for qualifying for a grant from the Indiana disaster recovery fund.
Homeowners may apply for disaster loans up to $200,000 to repair damage to their primary residences. Homeowners and renters may apply for disaster loans up to $40,000 to repair or replace their personal belongings including the contents of their homes and cars. The interest rate for homeowners is as low as 1.938% with terms up to 30 years.
Businesses of all sizes may apply for disaster loans up to $2 million to repair or replace business assets such as buildings, inventory, and supplies. Small businesses may also apply for working capital loans to help pay the bills they would have been able to pay if the storms and tornados had not happened. The interest rate for business loans is as low as 4%
Do not wait on an insurance settlement before submitting an SBA loan application. You can begin your recovery. immediately with a low-interest SBA disaster loan. The loan balance will be reduced by your insurance settlement if you receive one.
Complete and return an SBA application as soon as possible. The deadline to apply for a loan to recover from property damage is September 3.
You must complete an SBA application to be eligible for State grant assistance. If you are denied a disaster loan, you will be referred to the State Disaster Relief Fund program for a grant of up to $10,000 for essential repairs and referrals to other resources..
You do not have to accept a disaster loan if you are approved. You have time to decide whether you need a loan after you are approved. However, you must apply before the deadline for a disaster loan to be an option.
There are three ways to submit an SBA loan application:
- Online at disasterloan.sba.gov
- In-person at the disaster loan outreach center at 5081 North Old State Road 37 in Ellettsville,
- or by mail: Call (800) 659-2955 to have an application mailed to you.