If I get FEMA assistance, can I get a SBA Loan?
Yes, you can get FEMA assistance and an SBA Loan or get one.
Do I need to get an SBA Loan to get FEMA?
No, you can get FEMA assistance without applying for a SBA Loan.
Can Restore LA help if I don’t get enough money from FEMA?
No. The Restore LA program only covers Hurricanes Ida, Delta, and Laura. Restore LA is funded by the federal government. Congress did not approve extra money for Hurricane Francine as it did for those hurricanes. We do not know if extra money will come from Congress for Francine.
Who Can Apply for a SBA Disaster Loan?
- Businesses of all sizes
- Homeowners
- Renters
- Private nonprofit organizations
You must be in a declared disaster area and meet other eligibility criteria depending on the type of loan.
How to use an SBA disaster loan
- Losses not covered by insurance or funding from the FEMA for personal and business, such as home repair costs exceeding what FEMA approves.
- Business operating expenses that could have been met had the disaster not occurred
Types of Disaster Loans
- Physical Damage Loans: Loans to cover repairs and replacement of things damaged in a declared disaster.
- Mitigation Assistance: To make improvements to reduce future damage.
- Economic Injury Disaster Loans: Funding to cover small business operating expenses after a declared disaster
- Military reservist loan: SBA provides loans to help eligible small businesses with operating expenses to make up for employees on active duty leave.
Considerations for deciding whether to get an SBA Loan
- We do not know if Congress will pass additional funds that will allow Restore LA to help with Hurricane Francine.
- This could change, but this is what we know right now.
- We only know that right now, FEMA and SBA are additional sources of recovery funds
- SBA Loans are Loans! You will have to pay back the money you received.
- As the law is now if Restore gets approved for Hurricane Francine, your Restore Grant will be reduced by the amount of your SBA loan.
- This means the SBA loan funds could lower your grant award
- Again, we do not know if Restore will be able to help with Hurricane Francine
- We also don’t know if Restore will be able to pay off SBA loans even if assistance is approved for Hurricane Francine
- We don’t know if SBA loans will be counted as a benefit that will reduce your Restore Grant award.
- Again, SBA loans are loans, you have to pay back the money you borrowed
- SBA loans cost less than regular bank loans. The interest rate is well below market rates.
The information provided in this post does not, and is not intended to, represent legal advice. All information available on this site is for general informational purposes only. If you need legal help, you should contact a lawyer. You may be eligible for our free legal services and can apply by calling our Legal Hotline at 1-844-244-7871 or applying online here.