In times of disaster, the U.S. Small Business Administration assists businesses of all sizes, faith-based organizations, non-profit organizations, and small agricultural cooperatives, homeowners and renters via low-interest disaster loans with terms up to 30 years. These loans are for uninsured and under-insured damages. If you’ve already used your savings to repair your property, you can “reimburse” yourself with a low-interest disaster loan.

 

• Businesses may borrow up to $2 million for their physical damages and economic losses
• Homeowners may borrow up to $200,000 to repair their primary residence; renters and homeowner can borrow up to $40,000 to repair and replace personal items, including vehicles
• You may add on an additional 20 percent of the approved loan total to fund mitigation improvements to make your home safer
• The loans have a 5-month payment deferment. The first payment is not due until 5 months from when you sign the closing documents.
• Interest rates are as low as 1.563% for homeowners, as low as 3.75% for businesses, and are just 2.75% for non-profit organizations
• There is no collateral required for loans of $25,000 or less
• There is no cost to apply, and no points or closing fees
• There is no obligation to accept the loan if offered. You can turn it down, and then you still have six months to “reactivate” your loan.

 

The application deadline is July 31, 2020 for physical damages.