Minnesota Disaster Assistance Applicants Urged to Return SBA Loan Application

September 17, 2007, ROCHESTER, Minn. -- Many residents who suffered damage from the August severe storms and flooding have registered for federal disaster assistance and afterwards received a loan application from the U.S. Small Business Administration (SBA). So far, 3,637 SBA loan applications have been distributed in southeastern Minnesota - but only 618 have been returned.

SBA loans are the primary source of long-term recovery assistance. Completing the SBA application is also necessary to be considered for some other forms of disaster assistance, and applicants should be sure to fill it out, according to officials from Minnesota Homeland Security and Emergency Management (HSEM) and the U.S Department of Homeland Security's Federal Emergency Management Agency (FEMA).

While disaster victims are not required to take SBA loans in order to receive FEMA housing assistance, a determination from the SBA that the applicant is not eligible for a loan is a necessary step for further review for unmet needs.

"Returning a completed disaster loan application to the SBA is a crucial part of the disaster recovery process. Homeowners, renters and business owners who sustained losses from the flood are strongly encouraged to apply for the SBA loan," said SBA Communications Specialist Richard Daigle. "People who apply for the loan will move forward in the disaster recovery process, but those who do not apply will lose the opportunity to get help, whether in the form of a loan or grant assistance."

"The SBA disaster loan application provides information necessary to determine the appropriate assistance for each applicant," added Federal Coordinating Officer Carlos Mitchell. "If the SBA is unable to approve a loan, the applicant may be automatically referred to other disaster assistance programs."

Two SBA Disaster Loan Outreach Centers are operating in affected counties. At the centers, SBA specialists can answer questions regarding the SBA loan process, help residents fill out applications for low-interest loans, and accept completed forms. Until further notice, the locations and hours of the centers are:

Houston County
Hokah Fire Station and Community Center
9 Mill Road
(Hwy 44 & Hwy 16)
Hokah, MN
Monday - Saturday, 9 a.m. to 6 p.m.

Steele County
143 W. Broadway St.
Owatonna, MN
Monday - Friday, 9 a.m. to 6 p.m.

To date, $9,872,100 in SBA loans have been approved in counties affected by the severe storms and flooding.

Residents and business owners alike may be eligible for low-interest SBA loans to help them recover from losses not covered by insurance, grants or other sources. Residents may receive loans, at interest rates around three percent, to replace personal property - such as furniture and clothing - or to repair damage to their primary residence. Businesses may receive loans, at rates around four percent, to repair damage to real estate, machinery, equipment and inventory. In addition, businesses may receive loans to help provide working capital to recover from the disaster's economic impact. Actual loan amounts and terms are determined by the SBA and based on each applicant's financial situation.

For more information, call the SBA Customer Service Center at 1-800-659-2955 or visit the SBA Disaster Preparedness Web site at www.sba.gov/services/disasterassistance/disasterpreparedness/index.html.

FEMA coordinates the federal government's role in preparing for, preventing, mitigating the effects of, responding to, and recovering from all domestic disasters, whether natural or man-made, including acts of terror.

Source: FEMA

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