SBA Has Issued $50 Billion in Disaster Loan Assistance
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UPDATED: Dec 6, 2011
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Personal loans issued by the Small Business Administration (SBA) reached new heights at the end of November, as the SBA announced the amount of money they lent from the date they were established surpassed $50 billion.
“Since the agency’s founding in 1953, the agency has made more than 1.9 million low-interest disaster loans worth more than $50 billion to homeowners, renters, nonprofit organizations and businesses of all sizes,” said the SBA Associate Administrator James Rivera in an SBA press release.
It has offered over $36 billion in disaster relief loans in the past 22 years alone.
The SBA issues low-interest personal loans to businesses and inhabitants of areas affected by disasters. Among those disasters the SBA has provided help was the Northridge Earthquake in 1994, the Upper Midwest Floods in 1997, Hurricane Ivan in 2004, and the 2005 Gulf Coast Hurricanes.
Recently, the SBA has been offering personal loans to counties and states who have suffered from storm, wind, rain, and drought conditions.
“Over the years SBA’s disaster assistance program has made it possible for small towns and large cities to rebuild, saving jobs and supporting the long-term economic recovery of areas that would have otherwise failed without help,” explained Rivera.
Disaster loans are the only SBA-backed personal loans that are available to non-businesses. They allow homeowners to borrow up to $200,000 to repair or replace damaged real estate. Individuals may borrower up to $40,000 to cover personal, non-real estate related property.
These personal loans are also made available to nonprofits of any size. These organizations can receive up to $2 million to repair business and personal property.
“The SBA’s disaster loan program, with its low interest rates and reasonable terms make it possible for disaster victims to handle the cost of rebuilding and take the steps necessary to prevent the risk of being hit by a similar disaster,” said Rivera in the release.