reside in a declared disaster area, you could qualify for financial assistance from the Small Business Administration (SBA). You can apply to the SBA for a loan that assists with recovery from a disaster as a homeowner, personal property owner and/or renter. Homeowners can apply for up to $200,000 to make repairs or replacements on their primary residence. The loans can’t be used for home additions or upgrades, unless local building code requires them. You may qualify for up to a 20% loan amount increase above the real estate damage if the improvements you make help prevent the risk of future damage cause by a similar disaster. This must be verified by the SBA. The SBA can refinance all or a portion of a previous mortgage if the applicant doesn’t have credit available anywhere else and suffered substantial damage due to a disaster that is not covered by insurance. Up to $40,000 can be borrowed by homeowners and renters to repair or replace personal property, including cars, furniture and appliances, that has been damaged or destroyed by a disaster. These loans are not available for vacation properties or secondary homes. Some rental properties, however, could qualify for assistance under the SBA disaster loan program. The SBA cannot duplicate any benefits. The proceeds from property or home insurance coverage are deducted from the total damage estimate. This determines the eligible loan amount. Those who cannot obtain credit elsewhere will not see more than 4% interest rate. On the other hand, those who are able to obtain credit somewhere else will not see an interest rate of more than 8%.
The SBA determines whether or not applicants can obtain credit
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