UPDATE: According to The Virgin Islands Consortium, the SBA has extended the deadline to apply for physical disaster damages on St. Croix to January 8, 2018.
We met with two very helpful individuals with the SBA Office of Disaster Assistance and want to make sure everyone understands the details of SBA loans. Watch the below video for more details.
The SBA offers low interest loans to areas affected by natural disasters, like hurricanes. The deadline to apply for a loan for damages caused by Hurricane Maria is December 18, 2017.
The first step in the process is to register with FEMA. You can do that one of three ways:
- Online at disasterassistance.gov
- Call 800-621-FEMA
- Visit one of the four SBA recovery centers on St. Croix
Homeowners are eligible for up to $200,000 to make repairs to their primary residence. Renters and homeowners may receive up to $40,000 for personal property, including home repairs, personal belongings, and automobiles. The interest rate can be as low as 1.75% with terms up to 30 years and payments can be deferred for up to one year. Loans for $25,000 or less do not require any collateral.
SBA loans are also available to businesses and nonprofits. Rental property owners should apply as a business for loans to repair damaged rental properties.
SBA Loan Tips
- Don’t wait for your insurance or FEMA to settle. Apply now!
- You don’t have to accept a loan if approved. Be sure to apply for a loan before the deadline and you can change your mind later if you decide you don’t want the money.
- You can also accept less than your approval amount. So, if you are approved for $40,000, but don’t want to put up collateral, you may accept only $25,000.
- SBA loans can be used to refinance your mortgage.