SBA Offers Disaster Assistance to Alabama Residents Affected by Severe Storms and Tornadoes

WASHINGTON, May 16 /PRNewswire-USNewswire/ --Alabama residents and businesses affected by severe storms and tornadoes May 11 can apply for low-interest disaster loans from the U.S. Small Business Administration, SBA Administrator Steve Preston announced today.

Administrator Preston took this action following a May 14 letter fromAlabama Governor Bob Riley requesting a disaster declaration by the SBA. The declaration covers the county ofCleburne, and the adjacent counties ofCalhoun,Cherokee,Clay,Randolph andTalladega in theState of Alabama and the counties ofCarroll,Haralson andPolk in theState of Georgia.

"We look forward to working withAlabama and the people affected by the storms and tornadoes to make the SBA disaster loans available to homeowners, renters and businesses," said Administrator Preston.

"Loans of up to $200,000 are available to homeowners to repair or replace damaged or destroyed real estate," said Frank Skaggs, Director of SBA's Disaster Field Operations Center inAtlanta. Homeowners and renters are eligible for loans up to $40,000 to repair or replace damaged or destroyed personal property. "The SBA's customer service representatives will be on hand at the Disaster Loan Outreach Center to issue loan applications, answer questions about the SBA's disaster loan program, explain the application process and help individuals complete their application," said Skaggs.

The Center will be located in the following community and will open as indicated:

Cleburne County

City of Heflin

Parks and Recreation

1228 Coleman Road

Heflin, AL 36264

Opens: Monday, May 19 at 12:00 noon

Tuesday, May 20 through Friday, May 23 from 8:00 am to 5:00 pm

Saturday, May 24 from 9:00 am to 1:00 pm (one Saturday only)

Close: Sunday, May 25 and Monday, May 26 (Memorial Day)

Tuesday, May 27 through Thursday, May 29 from 8:00 am to 5:00 pm

Friday, May 30 from 8:00 am to 2:00 pm

Closing: Friday, May 30 at 2:00 pm at the close of business

Raymond Hembree, SBA's District Director added that "Low-interest Federal disaster loans are available to homeowners, renters, businesses of all sizes and private, and non-profit organizations whose property was damaged or destroyed by the severe storms and tornadoes."

Businesses of any size and private non-profit organizations may borrow up to $1.5 million to repair or replace damaged or destroyed real estate, machinery, equipment, inventory, and other business assets. SBA can also lend additional funds to help with the cost of making improvements that protect, prevent or minimize the same type of disaster damage in the future.

For small businesses only, the SBA offers Economic Injury Disaster Loans (EIDL) to help meet working capital needs caused by the disaster. EIDL assistance is available regardless of whether the business suffered any physical property damage.

Interest rates are as low as 2.687 percent for homeowners and renters, and 4.000 percent for businesses, with terms up to 30 years. Loan amounts and terms are set by the SBA and are based upon each applicant's financial condition.

Individuals and businesses unable to visit the Center in person may obtain information and loan applications by calling tollfree (800) 659-2955. Hearing impaired individuals may call (800) 8778339.

The filing deadline to return applications for physical property damage is July 14, 2008. The deadline to return economic injury applications is February 16, 2009.

For more information about the SBA's Disaster Loan Programs, visit our website at www.sba.gov.

SOURCE U.S. Small Business Administration

Copyright © 2008, PRNewswire
Copyright © 2008, NewsBlaze, Daily News

Tags: Banking and Finance, , Alabama, district of columbia

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