The SBA will stop accepting applications on Sept 28. KENS 5 has got the details so you can decide if its worth your time.
KERR COUNTY, Texas — The U.S. Small Business Administration (SBA) is offering special disaster-related loans in the wake of the horrible July 4th flooding that tore through Kerr County and other counties in central Texas.
While the SBA is currently offering several types of loans, the application deadline for Business Physical Disaster Loans is Sept. 28, and business owners now have less than two weeks to get those applications started.
KENS 5 spoke to the SBA on Wednesday to find out what business owners would need to qualify so local businesses could decide if the process was worth it.
A Business Physical Disaster Loan is available to businesses in Kerr County and other affected counties. The loans are intended to help businesses repair or replace disaster-damaged property including real estate, inventory, business supplies, machinery and equipment.
The loan’s amount can be up to $2 million and there is no minimum amount. If a business is unable to get credit anywhere else, the loan interest rate for businesses is set at 4 percent. If a business does have the ability to get credit elsewhere, the loan interest rate is 8 percent.
SBA spokesman Gabriel Perales told KENS 5 there are no payments or interest for an entire year to help the business recover.
“Any business that was impacted and survived the flooding can qualify for up to $2 million dollars. The interest rate is as low as 4 percent up to 30 years, with no payments and interest in the first in hopes of getting them back on track,” Perales said.
At the same time, Perales said there are some very specific qualifications that applicants need to keep in mind.
Collateral: Perales said any loans over $50,000 would require collateral. He said real estate is the preferred form of collateral, even if the equity is insufficient to secure the full loan amount. Collateral can also specifically be a building, property, or machinery.
Flood Insurance: If the disaster was flooding-related, the survivor will be required to acquire and maintain flood insurance to remain eligible for an SBA disaster loan. SBA requires that flood insurance coverage be the lesser of 1) the total of the disaster loan, 2) the insurable value of the property or 3) the maximum insurance available.
Established Credit: While Perales said there was no specific minimum credit score required, applicants must have a credit history that shows that they have the ability to repay the loan.
Identity and Financial Information: Documentation would include the owner’s Social Security Number, the business-related Tax Identification Number, monthly income and expenses, a copy of the most recent federal income tax return, and insurance information.
Losses must be uninsured: Only uninsured or otherwise uncompensated disaster losses are eligible.
Perales said SBA underwriters look at each case to assist local business owners.
While applicants can go to sba.gov/disaster to get started, Perales suggests talking to SBA staff at local operations centers set up in Kerr County to get face-to-face assistance.
Locations in Kerr County:
1.Hunt: Formerly The Market at Bridget’s Basket 1551 HWY 39 Hunt, TX 78024.
Mondays – Saturdays 8:00 am – 7:00 pm CT
2. Kerrville: Hill Country Youth Event Center 3785 Memorial Blvd, Kerrville, TX 78028.
Mondays – Fridays 8:00 am – 7:00 pm CT Saturdays 8:00 am – 5:00 pm CT
3. Kerrville: First Presbyterian Church (Library) 800 Jefferson Street Kerrville, TX 78028
Mondays – Fridays 8:30 am – 5:00 pm CT Saturdays 9:00 am – 1:00 pm CT