SBA Loans Continue As First Maturity Approaches | News

The Small Business Administration issued nearly $26.5 million in disaster loans in the weeks following the deadly tornado outbreak that tore through western and central Kentucky and the agency continues to encourage people to apply.

Sally Graham, public information officer for the SBA, said it was always important for everyone affected by tornadoes to apply for disaster loans, especially those referred to the SBA by FEMA. These loans are available not only to small businesses, but also homeowners, tenants, and nonprofits.

If an application is denied, the SBA will refer the applicant to FEMA to see if additional funds are available.

Graham described this process as a critical step in disaster recovery.

“It’s kind of a hurdle that’s put in front of a disaster survivor, but it’s an important piece, in case there’s extra money they can leave behind, and just don’t know that. ‘they could have access to it,’ Graham mentioned.

The SBA deadline for physical damage loans is February 10 and the deadline for economic disaster loans is September 12.

Small businesses and some nonprofits can apply for up to $2 million in loans. Homeowners can apply for up to $200,000 in loans and tenants can apply for up to $40,000 in loans.

“If you are concerned about insurance, we advise (disaster survivors) to submit (their) application before the deadline…just so that disaster survivor has the opportunity to have another tool in their box tools for recovery,” the SBA representative said. .

The Purchase Area Development District is an SBA partner and lender. Mike Maxwell, business loans manager for PADD, said they couldn’t do anything directly related to this SBA loan process, but had asked people to call the SBA.

“Get an app,” Maxwell said. “It’s better to be turned down but get the application than to sit around and not get the application and possibly miss an opportunity.”

Currently, the SBA has opened three business recovery centers – one in Benton, Bowling Green and Madisonville. Graham said to visit the SBA at one of those locations to fill out an application or by calling and requesting the forms or filling them out online.

There are no obligations or fees associated with the loan. If a disaster survivor is offered a loan, they are not obliged to accept it and can defer it for six months.

“It’s just about putting the disaster survivor in control of what happens with their recovery, what they can do for long-term disaster recovery,” Graham said.

Lily Burris is a tornado recovery reporter for WKMS, Murray State’s NPR station. His 9-month reporting project is supported by the Corporation for Public Broadcasting.

Lily Burris is a tornado recovery reporter for WKMS, Murray State’s NPR station. His 9-month reporting project is supported by the Corporation for Public Broadcasting.

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