SBA Stands Ready to Assist Victims of Recent Severe Storms and Flooding in Mississippi

Following the announcement of the Presidential disaster declaration in Mississippi covering several counties as a result of severe storms on March 20 and continuing flooding, Administrator Steve Preston of the U.S. Small Business Administration issued the following statement:

"We look forward to working with the State of Mississippi to make low-interest federal disaster loans available to homeowners, renters and businesses," said Preston. "We will be swift in our efforts to help Mississippi disaster victims rebuild their homes and businesses."

Once local recovery centers are identified in the declared area, SBA officials will provide one-on-one assistance to disaster loan applicants.

The declared counties of Bolivar, Warren, Washington and Wilkinson are eligible for both Physical and Economic Injury Disaster Loans from the SBA. The contiguous counties of Adams, Amite, Claiborne, Coahoma, Franklin, Hinds, Humphreys, Issaquena, Sharkey, Sunflower and Yazoo in the State of Mississippi; contiguous counties of Chicot, Desha and Phillips in the State of Arkansas; and contiguous Parishes of Concordia, East Carroll, East Feliciana, Madison, Tensas and West Feliciana in the State of Louisiana are only eligible to apply for SBA Economic Injury Disaster Loans.

Disaster loans up to $200,000 are available to homeowners to repair or replace damaged or destroyed real estate. Homeowners and renters are eligible up to $40,000 to repair or replace damaged or destroyed personal property.

Businesses of any size and private non-profit organizations may borrow up to $1.5 million to repair or replace damaged or destroyed real estate, machinery and equipment, inventory, and other business assets. SBA can also lend additional funds to help with the cost of making improvements that protect, prevent or minimize the same type of disaster damage in the future.

For small businesses only, the SBA offers Economic Injury Disaster Loans to help meet working capital needs caused by the disaster. Economic Injury Disaster Loan assistance is available regardless of whether the business suffered any physical property damage.

Interest rates can be as low as 2.750 percent for homeowners and renters and 4 percent for businesses with terms up to 30 years. Loan amounts and terms are set by the SBA and are based upon each applicant's financial condition.

To be considered for all forms of disaster assistance, victims must first call the Federal Emergency Management Agency (FEMA) at 1-800-621-FEMA (3362). Additional details on the location of Disaster Recovery Center(s) and the loan application process can be obtained by calling the SBA Customer Service Center at 1-800-659-2955.

The filing deadline to return applications for physical property damage is July 7, 2008. The deadline to return economic injury applications is February 3, 2009.

For more information about the SBA's Disaster Loan Programs, visit our web site at http://www.sba.gov.