Deadline for SBA loans reaches halfway point

Jul 12, 2008 (Greensburg Daily News - McClatchy-Tribune Information Services via COMTEX) -- SBCO | Quote | Chart | News | PowerRating -- As Decatur County passes the one-month anniversary of the torrential rain that caused varying levels of damage, the Federal Small Business Administration wants to make sure those with losses apply for a loan while they still can.

The law allows 60 days from the date an emergency was declared for victims to register with the Federal Emergency Management Agency (FEMA) and the Small Business Administration (SBA). This means Decatur County residents have until August 11 to apply for SBA loans and/or FEMA grants.

Richard Daigle, SBA communications specialist, noted his department is not simply for business owners. It also helps homeowners and renters in times of emergency. SBA partners with FEMA to take over when damages are too great for FEMA grants to repair. For most people, he said, the interest rate on loans is 2.6 percent. If a person is approved, they will benefit from a lower-than-market rate. If they are not, they can return to FEMA for the possibility of larger grants.

"We are urging all victims to apply," he said. "It is their best possibility to gain federal assistance."

SBA loans are dependent upon determinations of a person's ability to repay. This means a recent bankruptcy or poor credit can cause a person to be denied. However, if steps have been taken to rebound from bankruptcy, it is still possible to obtain a loan. Even if a person is denied, Daigle reiterated that there is no downside to trying.

"People who apply get options not available to those who do not," he said.

If a person is accepted for an SBA loan, they have two months to decide whether to use the funds or not. This means a family can apply as they are working through the difficult decisions of what to do to rebuild and if it becomes unnecessary, they will not be bound. If it turns out to be needed, the funds are there.

"The payments can be affordable," Daigle noted.

Because of the low interest rate, people are frequently surprised at the reasonable size of payments toward the debt. For some, it is intimidating to fill out the paperwork, but by stopping by a Disaster Recovery Center, victims can get help filling out the forms.

"It doesn't take much time, and it's free to apply," he said. "We just want to help anyone we can help."

Once August 11 has come and gone, these options are no longer available, even though damage may still be revealed.

So far, the state of Indiana has received $22 million in assistance, but Daigle said the department wants to help even more.

To apply or learn more, call 1-800-659-2955.

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