Everything You Need to Know About SBA Disaster Loans
Natural disasters are very common no matter where you live, from volcanic eruptions to hurricanes. If you have gone through any of these disasters, it hurts to see your thriving business or home crumbling down in just a matter of hours. Before any of these unfortunate circumstances may happen to you, you should know your financial options. This part is where SBA disaster loans come into the picture. These loans help homeowners, small business owners, renters, and nonprofit organizations get back on their feet after disasters. This site will give you an overview of what this type of loan is all about. So, make sure to see more here.
The US Small Business Administration essentially offers these disaster loans. SBA disaster loans are loans that offer you low-interest rates. They are often provided to individuals who need money to replace or repair any damaged property that they have after the disaster. Read more about loansat http://www.ehow.com/how_4796575_become-commercial-loan-broker.html
While most small business owners take advantage of these loans, you don’t necessarily need to own a business to be an eligible borrower. SBA disaster loan providers also offer funds for homeowners and renters who are equally affected by disasters. The main requirement here is living in an area that is declared to have been struck by a disaster. Be sure to learn here!
When it comes to disaster loans, you must understand that their sole purpose is to restore your property to its original condition before the disaster. In short, you cannot use these funds to make improvements to or renovate your property. Nevertheless, you may get an additional twenty percent increase in the amount of loan you are borrowing if you want to make improvements to your property, which are intended to prevent potential damage from future natural disasters.
Just like other loans, you can choose from different kinds of SBA disaster loans too. Each kind exists with different loan amounts, qualification requirements, and purposes.
Personal property and home loans at this websiteare one of your first options. People whose personal property or homes have been struck by natural disasters could apply for this kind of loan from the SBA. Homeowners may apply for a loan as high as $200,000 that they can use to replace their primary home. Both renters and homeowners may apply for a loan as high as $40,000 to replace their personal property, which includes items such as appliances, furniture, cars, and clothing.
Another type of SBA disaster loan is the business physical disaster loan. People who are eligible for this type of loan are the business owners, rental property owners, and nonprofit owners. Nonprofit and business owners may get a maximum loan amount of $2 million to replace or repair anything damaged from the disaster like inventory to the property, equipment, and machinery.