How to apply for a Small Business Administration disaster loan in the wake of Irma; how it differs from disaster grant

Jacksonville, FL — If you're still in need of assistance due to damage from Hurricane Irma, the US Small Business Administration, in partnership with FEMA, is offering low-interest disaster loans.

It's not just businesses that can apply, the loans are available to homeowners, renters, and even non-profit organizations.

However, before applying for a loan, SBA says you'll always want to start with FEMA and apply for one of their disaster grants. You can find that at www.disasterassistance.gov. 

Gary Petty, a spokesperson for FEMA, describes their grants as 'Step 1' for people hit hard by Irma and the SBA loans as 'Step 2.'

Petty says their grants are really about getting people back into their house, not covering all the damage.

"FEMA grant money is not intended to make someone whole. It's actually intended to get them back into their house... Take for example, a 3-bedroom house. Kids were there and all 3 bedrooms were being occupied. Now, kids have left, they've married off, so now there's just one couple in this house, but there's 3 bedrooms. With the FEMA grant money, the intent is turn around and get those people back in their homes, so they can live in a safe, functional, and sanitary environment. The grant money is enough for them to have one bedroom back in shape, a bathroom, a kitchen, and one living quarter. The other two bedrooms, that's where our partner SBA would come in," explains Petty.

According to Adrianne LaNeave, a Public Affairs Specialist with SBA, the loan amounts depend on your situation.

"For businesses it [the loans] may be up to $2 million, for homeowners it may be up to $200,000," says LaNeave.

Interest rates area as low as 3.305% for businesses, 2.5% for private nonprofit organizations, and 1.75% for homeowners and renters. We're told loan terms can be up to 30 years.

To be considered for all forms of disaster assistance, register at www.disasterassistance.gov, or call the FEMA toll-free helpline at 800-621-3362.

To apply for the SBA loan, visit https://disasterloan.sba.gov/ela or call SBA's Customer Service Center at 800-659-2955.

The filing deadline to submit loan applications regarding physical property damage is November 9, 2017. The deadline for economic injury applications is June 11, 2018.

As of September 28, the SBA says they've already approved 108 disaster loans for the amount of $5,569,000.