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Will there be water damage? SBA has low interest loans to help businesses and homeowners

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Business owners and residents of St. Louis, St. Louis, and St. Charles counties can apply for low-interest federal loans to cover uninsured losses from last month’s flash floods.

The Small Business Administration offers home, business, and economic damage disaster loans to help pay for losses not covered by federal aid or insurance.

According to SBA spokesperson Sushell Kumar, most people are unaware of how much damage water damage can do to business owners and homeowners.

“One inch of water can cause as much as $25,000 in damage, and that’s on the homeowner’s side,” says Kumar. “On the business side, his quarter of businesses that are closed for the first five days after a disaster have a 90 percent chance of failure.”

Via SBA:

  • Business owners, including private nonprofit owners, are eligible for loans of up to $2 million to replace damaged property, equipment, inventory, or other business assets.
  • Homeowners can borrow up to $200,000 to repair or replace their primary residence.
  • A homeowner or renter can borrow up to $40,000 for repairs on private property.
  • Interest rates for homeowners or renters are as low as 1.68%. The tax rate is lower at 1.87% for private non-profit owners and 2.93% for business owners. The borrower must repay the disaster loan within 30 years.

An uninsured person interested in a Federal Disaster Loan should first: Federal Emergency Management Agency websiteUninsured flood victims not covered by FEMA can apply for low-interest insurance SBA loan for repairs.

An SBA agent then conducts a credit check and assesses damages to determine how much the applicant can borrow.

SBA loans are issued within four weeks of an approved application.

“If you don’t have insurance, SBA is a source of recovery, rehabilitation, or repair,” says Kumar.

More than 750 homes and 130 businesses were damaged in last month’s floods. Officials estimate uninsured property damage and emergency costs at least $35 million.

Missouri business owners in Franklin, Jefferson, Lincoln, and Warren counties can apply for a disaster loan if their company loses business due to flooding. Business owners in Calhoun, Jersey, Madison, Monroe, and St. Clair Illinois may also apply for an economic disaster loan.

SBA spokesperson Rae Logan said property losses were severe in the St. Louis area and low-interest loans could help families and businesses get back on their feet quickly.

“If you have $100,000 worth of damage and your insurance company provides $25,000, our loan will help bridge that gap,” Logan said.

People with damaged homes or businesses have until October 7 to apply for assistance, and those with financial losses have until May 8, 2023 to apply for federal economic injury loans. there is.

Businesses and homeowners can also apply for consolidation loans to improve their properties to protect them from future floods.

moreover, Missouri American Red Cross We offer a pop-up resource center for flood victims that offers legal services, food stamps, and other disaster information.

people also united way Call 211 for housing, food, health, and childcare assistance.

St. Louis and St. Louis County residents and business owners who need more resources to help with flood damage should visit here.

Follow Andrea on Twitter. @ Dreb journalist