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Under what circumstances is The Road Home award used to repay a SBA loan?

April 26, 2017award circumstances Home loan repay road SBA Used

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Under what circumstances is The Road Home award used to repay a SBA loan?

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Applicants who receive Road Home assistance under Option 1 and also have an SBA loan for costs to repair or rebuild their home are required by SBA to repay or reduce their SBA loan to the extent that the homeowner’s total benefits (SBA assistance plus Road Home funds plus other assistance) exceeds their total loss. The SBA determines the amount of The Road Home award that it considers a duplication of benefits. If an applicant chooses Option 2 or 3, the outstanding principal balance on the SBA lien against the property must be repaid or released as will all other liens on the property. If SBA funds have been approved, but not yet been disbursed, the applicant will be eligible to keep all of their Road Home grant, but their SBA maximum loan amount may be reduced.