Many business owners and residents have faced significant challenges due to Hurricane Beryl.
To assist with recovery efforts, we reached out to FEMA, which directed us to the Small Business Administration (SBA) for support options.
SBA provides relief for all affected
According to Susheel Kumar, Public Information Officer for the SBA’s Office of Disaster Recovery and Resilience, low-cost loans from the U.S. Treasury are available to support businesses, homeowners, renters, and non-profits impacted by the hurricane. Kumar emphasized that these funds are not processed through traditional banks but are directly available through the SBA.
“For homeowners, the interest rate on these loans can be as low as 2.68 percent, and for businesses, it’s as low as 4 percent,” Kumar explained. “Applicants will receive a decision on their loan application within 30 days. To expedite the process, we recommend visiting a disaster recovery center near you.”
Understanding the loan application process
Kumar detailed the application process: “When you apply, we will send an appraiser or a damage assessment person to evaluate the damage to your home or business. The loan amount is based on this assessment. Our underwriters will then review your income, tax returns, and credit history. If everything is in order, the money for the most part, is yours.”
Common reasons for loan denial include insufficient income to support the debt, delinquent credit, or unresolved tax issues. However, Kumar noted that there are reconsideration rights. “You can come back within six months and provide proof of improvements, like better credit, or new employment.”
Affordable financing amidst recovery
Kumar also addressed concerns about the cost of borrowing: “2.68-percent is almost free money. Interest rates on money market accounts, savings accounts are mid-fives to high fours. The interest rate on your savings account pays more than the cost of borrowing. Financial outcomes post-disaster can be costly, this is the most inexpensive way to borrow.”
For more information or to apply for a loan, contact the SBA Disaster Customer Service at 1-800-659-2955 or visit their website for assistance.