Deadline for Disaster SBA Personal Loans Soon

Tornado hitting a barn
The U.S. Small Business Administration (SBA) announced the deadline to apply for their economic injury disaster personal loans in Tennessee and North Carolina.

Businesses in both states have less than a month to apply for a disaster loan designed to help small businesses affected by recent tornadoes.

The deadline to apply for a personal loan in North Carolina is May 11, 2012, while Tennessee’s deadline is May 12, 2012.

“Businesses that suffered economic losses as a result of the disaster and want to apply for low-interest loans from the SBA are urged to do so,” said Frank Skaggs, director of SBA Field Operations Center East, in a press release.

The SBA is encouraging everybody in qualified areas whose businesses were affected by the recent storm activity to apply now instead of waiting for their insurance settlements to come through.

“If someone does not know how much of their loss will be covered by insurance or other sources, the SBA will consider making a loan for the total loss up to its loan limits, provided they agree to use insurance proceeds to reduce or repay their SBA loan,” said Skaggs.

Personal loans to repair or replace damaged or destroyed real estate may be taken out by homeowners for up to $200,000. Businesses and non-profits may borrow up to $2 million to repair or replace destroyed real estate, machinery and equipment, inventory and other business assets.

The interest rates on these SBA personal loans can be as low as 1.875 percent for homeowners, 3 percent for non-profits and 4 percent for businesses.

The terms can be up to 30 years, but are dependent upon applicants’ financial situations.

For additional information, applicants can call the SBA’s customer service center at 1-800-659-2955, or 1-800-877-8339 for the deaf and hearing impaired. Questions can also be emailed to [email protected]