U.S. Small Business Administration is funding businesses with disaster loans to help them meet the cost of hurricane deductibles and pay for uninsured Hurricane ISAAC damages. The assistance helps to cover for losses and meet the cost of hurricane deductibles on an insurance policy.
It all started with Hurricane Katrina, when it became necessary for policy holders to pay special deductibles in case of hurricanes. It means that when a wind or storm of the intensity like Katrina or Isaac strikes, it becomes mandatory for policyholders to pay a certain percentage of the value of their home as deductibles.
So, people who face the ravages a storm leaves behind on its path, are actually left on their own. For serious damages, people have to pay thousand of dollars from their own pocket before they find access to their insurance coverage. And incase of low-level damages, there is literally no assistance from insurers and people are left all alone.
SBA disaster loan is the right means to get an organization funded to overcome crisis and relief from damages. People no longer have to wait for insurance coverage and can straight away go and apply for Hurricane Isaac SBA loans. The last date to apply for the grant is kept Oct 30th. With the support, it is possible for business owners to restart operations and homeowners can return back to normal life.
Business owners and non-profits can borrow nearly $2 million to overcome property damages and economic injuries. Homeowners can borrow $200,000 for reparation and replacement work. Renters can also borrow $40,000 to replace damages of personal property due to the storm. However, it is necessary for businesses and home-owners as well as renters to apply for disaster loans before the Oct 30th deadline elapses.
People living in the following parishes can apply for loans immediately – Ascension, Livingston, Lafourche, Jefferson, Plaquemines, Orleans, St. Charles, St. Bernard, St. John the Baptist, St. Tammany and Tangipahoa. The rates for the loans are kept almost the same as the earlier SBA loans made. For homeowners, the rate is 1.688 percent, 4 percent for business owners and 3 percent for non-profits. Property owners can also place demands for an extra 20 percent in loans so that they can take up mitigative actions like building of storm shutters for the future hurricanes.
The disaster loan program under SBA has been overhauled and the agency aims to provide decisions to homeowners in two weeks and business owners in three weeks. There are also other FEMA need assistance programs available where people can find help.
This article was submitted by Raj Tulshan, Director of Business Development of Biz2Credit. Biz2Credit is a small business marketplace that connects entrepreneurs with financing options and advice to grow their business. Send all questions to email@example.com