How does the SBA loan work?
If upon review of your FEMA application the SBA determines you are financially qualified and able to repay a long-term, low interest loan, you will be offered a loan. If it is decided you are unable to qualify for a loan, you will be considered for another FEMA grant assistance program. Loans must be repaid; grants do not. You cannot apply directly for a grant. If you are offered a loan, you are not required to accept it. If you reject it, however, you won’t be referred to the additional grant program. Since we lived on a limited fixed income, can we afford to borrow money? The disaster loan program managed by the U.S. Small Business Administration is tailored to help people at all levels of income. Interest rates can be as low as 3.187 percent for homeowners. If you obtained a $10,000 loan for 30 years at that interest rate, your monthly payment would amount to about $44.00. Actual loan amounts and terms are set by the SBA and are based on each applicant’s financial condition. I am 70
