SBA will help with disaster loans

By PHYLLIS ZORN

Staff writer

Representatives from the Small Business Administration are at Hillsboro city building until Aug. 15 to provide information on low-interest disaster loans for county residents who suffered flood losses between June 22 and July 6.

Interest rates as low as 1.938% are available to homeowners, renters, nonprofit organizations, and business owners.

“If homeowners or renters qualify for a loan, it’s at 1.938% for the life of the loan,” SBA public information officer Don Fikes said.

“The loan term is up to 30 years. If you combine the two, a low interest rate and a 30-year term, maybe it can be affordable.”

At that rate and for 30 years, cost to borrow $10,000 would be $36.65 per month, according to standard loan rate calculations.

People with large amounts of money in the bank or large 401(k) plans might have to pay a higher rate, Fikes said.

Business loans are 4% and private nonprofit organizations are 2.75% interest.

Homeowners can borrow up to $200,000 for their primary residence and people with damage to personal property including vehicles can borrow up to $40,000.

Loan amounts and terms are based on the applicant’s financial condition. 

Once an application has been submitted, a loss verifier will contact the applicant, Fikes said.