Disaster survivors must repay SBA disaster loans.
The SBA can provide up to $200,000 to homeowners to repair or replace their primary residence.
Homeowners and renters are eligible for up to $40,000 to help repair or replace personal property.
There are no upfront fees or early payment penalties charged by SBA.
Can an SBA disaster loan be forgiven?
The SBA disaster loan forgiveness program allows certain individuals who have been affected by a natural disaster to get part of their SBA loan forgiven. You will then have to contact the SBA in order to determine if there is any chance of getting part of your loan forgiven.
Do you have to pay back a FEMA loan?
FACT: FEMA’s disaster assistance program does not cover food losses. RUMOR: FEMA grant money is a loan and must be paid back. FACT: FEMA grants do not have to be repaid.
What happens if you default on a SBA disaster loan?
The lender has the right to seize the assets the borrower used as collateral to back the loan. If you default and the lender takes a loss on the loan, it submits the loss to the SBA to honor its guarantee. The SBA guarantees up to 85% on loans of $150,000 and less, and up to 75% on loans over $150,000.
How does an SBA disaster loan work?
What is available as part of the SBA low-interest disaster loan programs? Eligible homeowners and renters may borrow up to $40,000 to replace disaster-damaged or destroyed personal property. Businesses of all sizes can qualify for up to $2 million in low-interest loans to help cover physical damage.