How to get a 2.66% government loan to repair storm damage to your home

Key takeaways

• 80% of disaster loans are for homeowners and renters, and about 20% goes to businesses.

• 2 SBA Recovery Centers Open Thursday in Harris County, More Opening Soon

• Rates: 2.66% for owners/tenants; as low as 4% for businesses

• One year, interest-free before having to start repaying

• If you already used a higher interest rate credit card to cover repairs, you can pay it off with a 2.66% SBA loan.

HOUSTON – Recovering from a storm or natural disaster and being financially disabled. FEMA grants to Houstonians, even after Harvey, were generally less than $3,000.

RELATED: Q&A with Houston storm lawyer about insurance claims after last week’s tornadoes and thunderstorms

On Thursday, a week after the deadly Derecho storm hit our region, the government set up agents where storm victims can come and apply for a loan with two attractive factors:

1) A low interest rate of 2.66%

2) You will have a full interest-free year before you need to start making payments.

“We are here to help every part of the community recover,” said Houston native Francisco Sanchez, who is also an associate administrator for the Small Business Administration (SBA).

SEE ALSO: ‘Many months of work’: Inside look at downtown Houston rebuilding after wind damage to estimated 4,000 windows

“The last thing people want to talk about and think about sometimes is a loan. You have just suffered an impact. You have just suffered some losses. The last thing you want to think about is taking on additional net debt. But the reality is that recovery can be expensive. So let me explain to you what I mean by long term, low interest loans for individuals. These are owners and tenants. You can get up to $500,000 to repair your structure for physical damage, up to $100,000 for personal contents. And so the furniture, the clothes, your vehicle. We saw many vehicles affected by this disaster,” Sánchez said.

Where and how to apply

Two SBA recovery centers opened Thursday in Houston and more will open soon

1) Business Recovery Center @ University of Houston – Downtown

Marilyn Davies College of Commerce | Room B106, 1st floor

320 North Main St., Houston, Texas 77002

Parking is located under the Marilyn Davies College of Business in the Shea Street building.

Monday to Friday, 9 a.m. to 6 p.m.

Saturday, 9 a.m. to 4 p.m.

Closed Monday, May 27 for Memorial Day

2) Business Resumption Center at Trini Mendenhall Community Center

1414 Wirt Rd., Houston, Texas 77055

Monday to Friday, 9 a.m. to 6 p.m.

Saturday, 9 a.m. to 4 p.m.

Closed Monday, May 27 for Memorial Day

***IF YOU CANNOT GET THERE IN PERSON**

VIRTUAL BUSINESS RECOVERY CENTER | OPEN Monday to Friday from 8:00 a.m. to 4:30 p.m. | [email protected] | (916) 932-8925

According to Sanchez, most people may not know that 80% of disaster loans through the SBA are for homeowners and renters, and about 20% goes to businesses.

“This is the important point for homeowners and renters, individuals: the interest rate for this catastrophe has been as low as 2.66% for over 30 years. For businesses, this figure does not exceed 4% over 30 years. And that’s how we accelerate access to the capital people need to recover,” Sanchez said.

“When I visited this community a few days ago, I saw people already lining up debris. I saw trees already placed on the sidewalk. I saw contractors at work. If you are a homeowner, business owner or individual who has already put down your credit card to pay for this to jumpstart your recovery or if you have already incurred expenses, you can always contact the SBA to obtain a loan at this rate of 2.66% over 30 years. to reduce interest that you pay, or to give you the capital you need to be able to recover. »Sánchez said.

Business Impacts of SBA Loans Go Beyond Physical Damage

“I have heard from many businesses that have not been physically impacted, but are seeing a loss of revenue. Either the power was out. They couldn’t access their business. Their employees were affected and so they could not open. Customers are not coming back yet for various reasons. If your business is short on revenue, the Small Business Administration may offer you a Economic Injury Disaster Loan it will help cover those overhead operating costs to help you get back on your feet,” Sanchez said.

With all loans, business or personal, Sanchez said you don’t have to make a payment for 12 months and 0% interest.

“So that gives you a year to be able to do what matters most. And this is how you can focus on your own personal recovery. And SBA will be there a year later to continue working with you, to get that loan.

Sustainability is encouraged and different from what SBA previously covered

A recent change also lets you use the money you borrow to protect against future disasters. In the past, this could only be used to protect against damage from wind or tornadoes. Now you can use it to strengthen your home or business to protect against further natural disasters.

“Thanks to the changes we’ve made at the Small Business Administration and the lessons we’ve learned here in Houston and Harris County, Texas, you can now use the mitigation feature to mitigate any type of disaster you face. might be faced with. community. So if you get hit, you shouldn’t just think about protecting yourself from a tornado or wind. You can now use these funds to mitigate floods, hurricanes or even ice storms,” Sanchez said.