Low-interest disaster loans made available to residents, businesses

Interest rates start below 3 percent for SBA loans.
CLEVELAND -- With the presidential disaster declaration, homeowners, landlords, tenants and business owners in Mahoning, Trumbull, Portage, Summit and Medina counties are eligible to apply for low-interest disaster loans from the U.S. Small Business Administration.
To be considered for all forms of disaster assistance, including SBA loans, applicants must first call the Federal Emergency Management Agency at (800) 621-FEMA. Even those with some insurance should register for assistance through FEMA, SBA advised.
Homeowners should not automatically turn over their insurance settlement checks to their mortgage holders to pay down their mortgages, SBA warned.
Doing this without a written demand letter from the mortgage holder will have a significant negative impact on one's ability to get an SBA loan to repair damaged property, SBA said.
Details about loans
SBA offers loans of up to $200,000 to repair disaster-damaged homes. Homeowners and renters are eligible for up to $40,000 to replace personal property.
Loans to businesses and nonprofit organizations of up to $1.5 million are also available to repair damage to real estate, machinery, equipment and inventory and for leasehold improvements. Working capital assistance is also available. A business can get economic injury assistance without suffering physical damage.
SBA deadlines are Sept. 30, 2003, for physical damage loans and May 3, 2004, for economic injury applications.
Interest rates for homeowners and renters can be as low as 2.812 percent. For businesses, rates can be as low as 2.953 percent. Loans can be for as long as 30 years. SBA sets loan amounts and terms based on each applicant's financial condition.