One calamity or disaster can demolish someone’s dream. We humans can use tech to visit Mars or the moon. Still, we feel nothing but helpless when it comes to natural disasters or unforeseen disasters. SBA loans are like a ray of hope for those who have suffered a tremendous financial loss in some declared disaster.
What Is An SBA Loan?
You must have heard about SBA and its different kinds of small business loan programs. SBA stands for Small Business Administration. The Small Business Administration set up the SBA disaster loan program to help the business owners suffering from losses due to disasters such as droughts, floods, hurricanes, tornadoes, wildfires, etc.
When such unforeseen circumstances happen and business owners find it hard to run their company, the Small Business Administration helps them through the SBA disaster loan program.
They can efficiently distribute the SBA disaster loan directly to the borrower. The SBA disaster loans are given at a low-interest rate and for the long term. Therefore, the borrowers don’t find any kind of pressure to repay it. SBA disaster loans are not just limited to help the business owners only. These loans are given directly to the families as well as the individuals too.
The SBA disaster loans help the property owners to replace and repair their home that has been damaged due to disaster; not only that, and they can also replace the damaged property up to a certain limit that has been destroyed by floods, hurricanes, droughts, tornadoes, wildfire, etc.
Ways To Get SBA Disaster-Related Financial Help
If you want to know “how are SBA Disaster loans disbursed”, then the following points can help you get the answer you are looking for:
· It may happen that your insurance company can’t cover a huge amount of losses, or they hardly give any insurance amount due to this kind of unforeseen circumstances. You can apply for SBA disaster-related relief if you are a business owner, property owner, or renter.
· If you are running a business, you can apply for an SBA disaster loan of up to $2 million. This will include losses of documents as well as physical damage.
· If you are the owner of a house damaged by the disaster, you are eligible to get SBA disaster loans up to $200,000 for repair and replacement. This is known as homeowner disaster loans.
· For the business owners, SBA disaster loans are applicable for physical losses that can be used to repair or replace the assets. They can easily replace the pieces of machinery, tools, equipment, and even the property.
· There are also economic injury disaster loans that are for small agricultural and small business owners. This kind of loan helps them to meet the companies’ obligations due to the natural disaster.
· Personal property disaster loans are given on a long-term basis at a low-interest rate that you can avail of up to $40,000. You can use this to repair or replace damaged personal property such as furniture, clothes, vehicles, home appliances, rugs, etc. You can apply for this kind of SBA disaster loan if you are a renter.
Steps You Can Follow When Applying For An SBA Disaster Loan
· You need to follow a few important steps at the time of applying for an SBA disaster loan.
· The first thing that you need to do is find out if your disaster is listed or not. For this, you have to check the current official disaster declarations list. If the Small Business Administration has formally declared a disaster declaration at the place where you are residing, then you are eligible enough to apply for the SBA disaster loan.
· A simple way to apply for an SBA disaster loan is by sending an email online. It is one of the fastest ways to do so. And after all, you will have a record of it too.
· You can apply for such a loan without having to wait for your insurance company to come to you.
· You can also register online for an SBA disaster loan by going through the application process that is given online. You just need to fill up all the required information and submit the form.
· The loan officer will check your property and credit score to confirm whether you are eligible or not.
· The SBA will take two to four weeks to make the final decision. And if you are eligible to get the SBA disaster loan, you will get the loan documents that you have to sign.
Get Your SBA Disaster Loan Approved
You need to make sure that it gets approved at the time of applying for an SBA disaster loan. If your SBA loan gets approved, you will easily protect your property against any kind of damage that you may face in the future.
Therefore if you don’t have any idea or knowledge about the SBA disaster loan application process, you should try to get help from an expert from a reputed company. SBA loans could be a life saver for your small business!
