June 22, 2010

Small Business Administration Helps Flood Victims

The Small Business Administration helps flood victims who are individuals and households, not just small businesses. Flood victims should apply for an SBA loan, even if they are not a small business and even if they do not want a loan, by July 6.

Many flood victims have not applied for all the assistance which may be available to them. It is especially important that individuals whose homes were damaged be aware of how they can receive the help they need.

If flood victims received less than the $29,900 maximum from FEMA assistance, they might be eligible for additional help if they had significant damages in excess of that amount. For those whose damages exceed the $29,900 but who received less from FEMA, it is important that they submit an application for an SBA loan by July 6 – even if they do not want a loan and even if they are individuals rather than a small business.

The reason they should apply for an SBA loan is that many of the applicants for a loan are denied the loan but instead receive an additional grant from SBA. Even if they are approved for a loan, they do not have to take the loan if they do not want it. Submitting an SBA loan request should not affect their credit.

Several thousand SBA applications have been distributed to flood victims but very few have been submitted. If the SBA applications are not postmarked by July 6, flood victims are not eligible for SBA loans, other grants, and for some longer term supportive services. If flood victims have difficulty completing the application, they should fill it out as well as they can and send it to SBA which will contact them if they need additional information.