SBA prepared to offer $3.3B in disaster loan funds for Harvey victims

The SBA has so far granted $1.5 million in Harvey-related loans

SBA prepared to offer $3.3B in disaster loan funds for Harvey victims
The Small Business Administration (SBA) is ready to offer disaster loans for Harvey victims with a $3.3 billion fund for uninsured homeowners and businesses, The Star-Telegram reported.

To prepare for incoming loan applications, the SBA is bringing more loan processors to its Fort Worth location.

“The goal is to always do this as efficiently and effectively and timely as possible, but if you’re out of your home or you’re out of your business, nothing is ever fast enough,” Linda McMahon, the SBA administrator, told the publication. “We’d just like to assure those folks who are reaching out to us that we will do everything we can possible to expedite what we can to help you get back to the most normal way of life.”

Herbert Austin, district director for the SBA, said 300 more workers may be added to the already 500-strong Fort Worth office to handle the expected influx of loan applicants, the news outlet said. The SBA aims to process 100,000 loan applications in 30 days. According to McMahon, the Federal Emergency Management Agency expects 900,000 loan applications.

The SBA offers low-interest loans with 30-year terms for uninsured damage to homes or business-owned properties. Loans with amounts of $25,000 can be given without collateral. The limit for business loans is $2 million for repairs and property replacement, while the limit for home loans is $200,000 to cover home repairs and replacement. The personal property limit is $40,000. Interest rates range from 1.75% to 6.61%, factoring in the applicant’s ability to obtain credit elsewhere.

The SBA has so far granted 14 Hurricane Harvey-related loans with a total amount of $1.5 million.

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