There’s still time to apply for SBA loans to repair tornado damage

Residents and businesses affected by the May 22 tornado can still apply for Small Business Administration (SBA) loans to help with storm repairs. SBA help is available for homeowners, renters, or businesses and the loans have credit and income qualifications. Although the Sept. 6 deadline has passed, the SBA will still accept applications during a two-week grace period, which means applications will be taken electronically or by mail until Sept. 20. Applying for an SBA loan is a good idea, because even if an applicant isn’t eligible, an SBA denial is required to apply for many other types of assistance.

Getting tornado repair assistance

To repair tornado damage to your home or business, first contact your insurance company, file a claim and call a contractor. If your insurance doesn’t cover the cost of repairs, apply for a Small Business Administration Loan.

  1. Private insurance: What if my insurance doesn’t cover the cost of repairing tornado damage to my home or property?

    You can negotiate with your insurance company about your claim. Homeowners and property owners affected by the tornado with questions about insurance claims, repair contracts, other real estate matters, or other legal issues can call Volunteer Lawyers Network at (612) 752-6677. Owners should identify themselves as affected by the tornado.  http://volunteerlawyersnetwork.org/clients/aboutus
  2. Small Business Administration (SBA) loans: Why should I apply for an SBA loan?

    You have until Sept. 20, 2011 to apply for physical damage loans from the SBA. SBA Disaster loans, with rates as low as 2.6% interest for homeowners and renters, and 4% for businesses, have credit and income qualifications. The amount the SBA will lend depends on the cost of repairing or replacing the structure and/or contents, minus any insurance settlements or grants. To apply, call the SBA’s Customer Service Center at (800) 659-2955 (800-877-8339 for the deaf and hard of hearing), Monday - Friday from 7 a.m. to 5 p.m. Loan applications are available for download from www.sba.gov. Completed applications should be mailed to: U.S. Small Business Administration, Processing and Disbursement Center, 14925 Kingsport Road, Fort Worth, TX 76155. Those affected by the disaster may also apply for loans electronically from SBA’s website at https://disasterloan.sba.gov/ela/
  3. Other resources:  What if my insurance coverage isn’t enough to make repairs and I am not eligible for an SBA Loan?

    When private insurance and SBA loans do not meet tornado repair needs, other resources may be available. An SBA denial is required to access most other disaster funds. The Minnesota Housing Quick Start Disaster Recovery Program will provide assistance as a last resort to return a damaged home to its pre-disaster condition. Property owners who need additional financial assistance for home repair can contact these organizations to learn about available loans and grants:

If your property did not receive substantial damage but you still need help, you may be eligible for assistance from volunteers through these organizations:

Call the hotline for recovery resources

The Northside Community Response Team Hotline is available to help people affected by the tornado reach recovery services and support. Just call (612) 787-3730 from 9 a.m. to 6 p.m. Monday through Friday with questions on housing and legal issues, dealing with landlords, support for businesses, and more.

Published Sep 8, 2011