SBA Expediting Business Disaster Loans

In an effort to provide faster assistance to business owners in the areas affected by Hurricanes Katrina and Rita, the U.S. Small Business Administration (SBA) is expediting the process for disaster loans of less than $100,000 for businesses that can meet specified criteria.
The business owners must have satisfactory credit, a gross income greater than $25,000 and a satisfactory SBA loan history. Additional requirements include a controlling ownership by an individual or group of individuals and a verifiable federal tax return with 12 months of operations.

SBA disaster loans to businesses of all sizes and non-profit organizations are available up to $1.5 million to repair damage to real estate, machinery, equipment and inventory. Economic Injury Disaster Loans of up to $1.5 million are also available to small businesses unable to pay bills or meet operating expenses.

The SBA offers loans of up to $200,000 to repair disaster damaged primary residences. Homeowners and renters are eligible for loans up to $40,000 to replace personal property such as furniture and clothing. Interest rates can be as low as 2.68% for homeowners and renters and 4% for businesses with terms up to 30 years. Loan amounts and terms are set by SBA and are based upon each applicant's financial condition.

For more information on SBA's disaster loan program, call the SBA's customer service center by calling toll-free at 1-800-659-2955, or contact the agency via e-mail at disastercustomerservice@sba.gov/. Information is also available on the SBA's Web site at http://www.sba.gov/disaster/.