Deadline to apply for Small Business Administration loans Thursday – Selma Times-Journal

By Travis Gupton

SElma Times-Journal

Thursday is the deadline for everyone to apply for a Small Business Administration loan.

The January 12 tornado is still wreaking havoc on people’s lives two months later, and the SBA encourages people who are still suffering to apply for an SBA loan.

“We get more referrals than we get applications,” said Sharon Dooley, SBA public affairs specialist. “So my thing is for homeowners and renters. For homeowners and renters, FEMA will refer them to the SBA if they can’t help them, or based on their application. I encourage them to apply for an SBA loan. They may or may not think they will get one based on their credit score or ability to repay the money.

“Let the government make that decision. If they can’t, SBA can’t, they’ll send you straight back to FEMA. But, if you never apply with SBA and you get a letter from FEMA referring you to SBA and you just decide to throw it in the trash, that limits your options right there. I encourage everyone. Please.” Apply by March 16.

SBA offers low return options for the long term along with other good opportunities for those who still need it

Help from the storm.

“These are low-interest, long-term loans,” Dolly said. “Some of the loans have repayment options of 15-30 years. The interest rate for homeowners and renters is 2.313 percent and for businesses it is 3.305 percent. Non-profit is 2.375%. So for example, if someone qualifies for a $25,000 loan and wants to take out the loan and pay it back in 30 years. That’s roughly $96 a month.

“The SBA also waives all interest for the first year to help people try to recover. They also delay your first payment to the 12th month after you first pay off any loan. So here it is almost a year without a payment and you can start getting your home back on track.”

Dolly said renters should also apply because they can still get help even if they don’t own a home.

“I want to let the tenants know they don’t have their homes,” Dolly said. “So if you have personal property damage, you may be eligible for $40,000 for clothing, furniture or a vehicle. What do most people say about renters? That’s the type of assistance we can help them with,” he said.

The SBA does run a credit check on their loan applications, but according to Dooley, it’s not like regular credit checks.

“It’s very tiring when we pull the credit,” Dolly said. “Our credit score is less onerous than a regular financial institution. Some qualify and some don’t. You never know unless you apply.”