Disaster Assistance Resources
At Allegiance Bank, we practice what we pledge. That’s why when disasters take place and your world is turned upside down, we come alongside our customers to help however we can. Sometimes that means our lenders show up at a customer’s flooded home to help with the mucking process (see photo below). Sometimes that means listening to specific challenges and connecting our customers with the right resources that can help.
If you were impacted by Tropical Depression Imelda and are seeking disaster assistance, we have compiled some resources below to get you started. As always, if you have any questions, please contact a banker and it would be our privilege to assist you directly.
The process begins with FEMA
- If you have Flood Insurance, file a Flood Claim with your Insurance Agent
- Register at www.DisasterAssistance.gov, FEMA 800-621-FEMA (3362)
- FEMA will assign a Registration Number, which is shared with SBA
- An Income Test will determine qualification for a FEMA Grant or referral to SBA for Disaster Assistance Financing (email@example.com, 800-659-2955)
- If there is a need for housing, FEMA will cover the cost of local hotels for a limited time period through the Transitional Sheltering Assistance Program
- Business Physical
- Replace/repair damaged property
- Any size business is eligible
- Non-profits are eligible
- Economic Injury
Disaster Loans (EIDL)
- Working capital
- Home Disaster Loans
- Home replace/repair damaged property
- Personal property (Includes automobiles)
- Credit History: Credit deemed “acceptable” to SBA
- Repayment: Must show ability to repay loan
- Collateral: Required for physical loss loans and EIDL over $25,000. The SBA does not decline for lack of collateral, but available assets must be pledged, including real estate.
Loan Interest Rates
|SBA Disaster Loan Interest Rates|
|Loan Type||No Credit Available Elsewhere||Credit Available Elsewhere|
|Business Economic Injury Loan||3.305%||n/a|
|Non-Profit Economic Injury Loan||2.500%||n/a|
- Maximum: 30 years (if applicant has Credit Available Elsewhere, the maximum is 7 years)
- Each note starts with a 5-month payment deferment
- Repair/replace real estate/inventory/machinery/equipment or other physical losses
- Loan amount cannot exceed uninsured loss
- Limit based on combined disaster loans
- Actual loan amount is determined by SBA
Restrictions on Loan Eligibility
- Uninsured Losses: Only uninsured or uncompensated disaster losses are eligible
- Ineligible Property: Secondary homes, boats, airplanes, recreational vehicles (unless used for business purposes)
- Noncompliance: Applicants who have not complied with prior SBA loans may not be eligible, including borrowers who did not maintain flood/hazard insurance
- Hazard Insurance
- Flood Insurance (if located in designated flood hazard area)
- Each borrower and circumstance is different; the SBA Loan Officer will determine the final outcome of each case.
- Borrowers will have to manage part of the process, including filing lien documents prior to funding, sending notice to the first mortgage holder and obtaining contractor signatures.