SBA outlines low-interest disaster loan options after storm damage in Stephens County

Brian Beard, a public affairs specialist with the U.S. Small Business Administration Office of Disaster Recovery and Resilience, told the Stephens County Board of Commissioners that SBA disaster loans are available to cover damage not paid by insurance or FEMA after the Sept. 24–Oct. 30 storm.

Beard said the SBA offers long-term, low-interest loans for homeowners, renters, businesses of all sizes and nonprofits and that “there’s no cost to apply, and no cost if you decide to turn down that loan offer.” He urged residents to register with FEMA first and to apply to the SBA even before an insurance settlement is final if they think they may need funds.

The SBA representative said the application deadline had been extended to Feb. 7, with a grace period afterward but likely without disaster recovery centers remaining open. He explained that approved homeowners typically receive a one-year deferment with no interest or payments, and thereafter borrower rates can be as low as 2.813% for many homeowners, about 4% for most businesses and about 3.25% for nonprofits. Beard gave an example that a $25,000 loan spread over 30 years at 2.813% would be roughly $100 a month.

Beard described program limits and flexibility: no collateral or closing costs for loans up to $50,000; up to $500,000 available for home physical damage based on inspection and repayment ability; up to $100,000 for homeowners and renters to repair or replace personal property; and up to $2,000,000 for businesses and nonprofits combining physical damage, mitigation and economic injury working capital.

He also explained a mitigation incentive: approved borrowers can request an additional 20% of the estimated physical damage amount to fund measures designed to “build back stronger,” such as stronger roofing, storm shutters, sump pumps or safe rooms. “There’s been research that’s shown that for every dollar spent on mitigation … you can save up to $6 in future damage,” Beard said.

Beard encouraged residents to check online at lending.sba.gov, call the SBA 800 number or visit a disaster recovery center. He identified the nearest center to the meeting as the Washington Fire Department, 212 East Court Street, Washington, Wilkes County, open Monday–Saturday 8 a.m.–6 p.m., where SBA and FEMA staff can meet with applicants. He also said local emergency management and chamber contacts were helping to share information.

No formal action was taken by the board during the presentation.