From the FEMA website:
BIRMINGHAM, Ala. – For many Alabamians recovering from the recent tornadoes, completing a disaster loan application may be overwhelming, but it is an essential step in recovery.
“Many Alabamians have endured a tremendous amount of devastation and we want them to have access to every option for assistance and support,” said Cassius Butts, regional administrator of the U.S. Small Business Administration, who visited the disaster-damaged areas in Alabama on Friday. “Completing an SBA application opens the door to other types of disaster assistance.”
SBA disaster loans are not only available for businesses – the low-interest disaster loans can also help homeowners and renters rebuild and recover. No one is required to take out a loan, but the application must be completed to be considered for other assistance from the Federal Emergency Management Agency, such as grants to cover personal property, vehicle repair or replacement, moving and storage expenses and medical and funeral costs.
Homeowners can borrow up to $200,000 to repair or replace their primary residence. Homeowners and renters can borrow up to $40,000 to replace personal property lost in the disaster.
Business and nonprofit organizations of all sizes in all designated counties can apply for SBA loans to pay for disaster-related damages. Business owners can borrow up to $2 million to repair or replace disaster-damaged real estate, machinery and equipment, inventory and other business assets.
Economic injury disaster loans are also available for ongoing business expenses to recover from the economic impact of a disaster. Economic injury disaster loans are available even if the businesses didn’t sustain physical damages.
Loan amounts and terms are determined on a case-by-case basis. Interest rates are as low as
2.563 percent for homeowners and renters, and as low as 4 percent for businesses and 3 percent for nonprofit organizations. Payment terms as long as 30 years are intended to make the loans affordable.
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