SBA LOANS

SBA Loan Options for Florida Homeowners After a Hurricane

Florida homeowners know the devastating impact a hurricane can have. From roof damage to complete structural loss, the aftermath can feel overwhelming. While insurance often covers a portion of the repairs, it’s rare for it to cover everything. This is where the U.S. Small Business Administration (SBA) steps in, offering crucial low-interest disaster loans to help you rebuild your home and your life.

Many assume SBA loans are only for businesses, but that’s a common misconception. The SBA is a vital source of financial aid for homeowners and renters in federally declared disaster areas, providing funds for losses not fully covered by insurance or other resources.

Understanding SBA Home Disaster Loans

When a hurricane strikes and a federal disaster declaration is made for your area in Florida, the SBA can become your largest source of recovery funds. These loans are designed to help you:

• Repair or replace your primary residence: Up to $500,000 is available for homeowners to repair or rebuild their damaged or destroyed primary residence.
• Replace personal property: Homeowners and renters can borrow up to $100,000 to replace damaged or destroyed personal property, including furniture, appliances, clothing, and even automobiles.

Key Benefits of SBA Disaster Loans

• Low Interest Rates: Interest rates for homeowners and renters can be as low as 2.813% (though this can fluctuate based on specific declarations and whether you can obtain credit elsewhere).
• Long Repayment Terms: Loans can have terms up to 30 years, making monthly payments more manageable.
• Deferred Payments: Interest does not accrue, and payments are not due, until 12 months from the date of the first loan disbursement, giving you a crucial breathing period to focus on recovery.
• No Obligation to Accept: You’re not obligated to accept the loan if approved, allowing you to explore all your options.
• Mitigation Assistance: The SBA can also lend additional funds (up to 20% of your verified physical damage) to help you implement improvements that protect your home from future disaster damage. This could include things like strengthening your roof, elevating your home, or installing storm-resistant windows.

Eligibility: Are You Covered?

To qualify for an SBA home disaster loan, your primary home or personal property must have suffered damage in a federally declared disaster area. It’s important to note that secondary homes or vacation properties are generally not eligible for these specific loans, though qualified rental properties might be eligible under the SBA’s business physical disaster loan program.

How to Apply for an SBA Disaster Loan in Florida

The application process is designed to be accessible, and the SBA encourages you to apply even before your insurance claims are settled or you receive contractor estimates. Here’s how to navigate it:

• Register with FEMA: Your first step should be to register with FEMA at DisasterAssistance.gov or by calling 1-800-621-FEMA (3362). This is often a prerequisite for SBA assistance.
• Apply Online: The easiest and fastest way to apply is online through the MySBA Loan Portal at SBA.gov/disaster.
• In-Person Assistance: If you prefer in-person support, you can visit a FEMA Disaster Recovery Center (DRC) or an SBA Disaster Loan Outreach Center in the affected area. SBA representatives are available at these centers to provide one-on-one assistance.
• Phone or Email: You can also obtain disaster loan information and application forms by calling the SBA’s Customer Service Center at 1-800-659-2955 (TTY: 711 for the deaf, hard of hearing, or those with speech disabilities) or emailing disastercustomerservice@sba.gov.
• Required Documentation: When applying, be prepared to provide documentation such as:
  
  • Contact information for all applicants
  • Social Security numbers for all applicants
  • FEMA disaster number
  • Deed or lease information
  • Insurance information
  • Financial information
  • Employer Identification Number (EIN) if applicable

What to Expect After Applying

• Application Review: Your application and required documents will be reviewed for completeness.
• Loss Verification: Eligible applications are sent to the SBA’s loss verification team, and property inspections may be necessary to assess the total physical damage.
• Loan Officer Assignment: A loan officer will be assigned to your case to work with you, gather any additional information, review insurance or other recoveries, and recommend a loan amount.
• Loan Determination: The SBA aims to make loan determinations within 2-3 weeks after receiving complete application packages.
• Loan Closure and Disbursement: If approved, loan closing documents will be prepared for your signature. An initial disbursement (up to $25,000 for physical damage) may be made within 5 business days after receipt of signed documents. A case manager will then work with you to disburse any remaining loan amount.

Don’t Wait – Act Now!

After a natural disaster, time is of the essence. It’s crucial to begin the SBA disaster loan application process as soon as possible after a federal disaster declaration. Deadlines for physical damage applications are typically set after a disaster, so be sure to check the SBA’s disaster website or contact their customer service for the most current information related to your specific event.

Rebuilding after a hurricane is a challenging journey, but with the support of SBA disaster loans, Florida homeowners have a powerful resource to help them get back on their feet and build stronger, more resilient homes for the future.

For more advice on this or any other topics related to rebuilding your home after a storm, please contact us at info@floridasteelhomes.com.