Key to Rebuilding Alabama: Low Interest Disaster Loans

From an article on the FEMA website:

BIRMINGHAM, Ala. – Now that immediate needs are being met, the focus is shifting to long term recovery in the aftermath of April’s tornadoes.

Impacted residents are now dealing with issues from how to pay mortgages when no house remains, to replacing lost personal property.

The road to recovery will be long for many, but the journey has begun. Getting there will require help from many resources, including the U.S. Small Business Administration.
The SBA can help homeowners, renters, and businesses:

• Replace damaged homes and businesses
• Replace clothes, furniture and vehicles
• Replace inventory, machinery and equipment for businesses and certain nonprofits
• Provide working capital for small businesses and private non-profits

SBA can offer loans up to $200,000 to repair or replace real estate, and $40,000 to repair or replace personal property damages, including automobiles. The interest rate of disaster loans for homeowners and renters may be as low as 2.563 percent, with terms up to 30 years. This makes repayment affordable.
FEMA addresses immediate needs of disaster survivors, but it is low-interest disaster loans from the SBA that provide the greater amount of assistance.

The SBA has already approved more than $2 million to help with long term recovery.

Those who received damages to their homes or businesses need to complete and return the low-interest disaster loan application they received after registering with FEMA. While they’re not required to take out the loan the application process is a key to receiving other assistance. Homeowners and renters determined as unable to afford a loan are referred back to FEMA for consideration of getting a new refrigerator, furnishings and other home essentials.

Loans to business owners affected by the April tornadoes may be up to $2 million, with interest rates as low as 4 percent. These loans may pay for the repairs, replacement of property as well as working capital.