SBA at MRTC - Home Disaster and Disaster Assistance Loan | SBA - Hawai‘i Technology Development Corporation Maui Research Technology Center

Home Disaster Loan The United States Small Business Administration can lend up to $500,000 to homeowners to make repairs to their primary residences. Loans up to $100,000 are available to help homeowners and renters replace their personal property, including cars. The interest rate is as low as 2.5% for homeowners and renters with terms up to 30 years. Loan amounts and terms are set by SBA and are based on each applicant’s financial condition. Disaster loans have a 12-month deferment with 0% interest from the date of their first disbursement with no accrual. Applicants who are not ready to rebuild may extend the date of their first disbursement by notifying their case manager. Applicants now need to provide a written justification for physical disaster loans. -The SBA disaster loan may be used to relocate. Contact an SBA representative for more information. People who apply for an SBA loan and are approved are under no obligation to accept a loan. If they do not qualify for an SBA loan, they can be referred to FEMA’s Other Needs Assistance (ONA) program for possible additional assistance. Disaster Assistance Loan The US Small Business Administration (SBA) offers loans to mitigate against disasters like flood, wildfire, wind or earthquake. Those affected by a disaster can rebuild stronger by increasing their SBA disaster assistance loan up to 20% of the verified physical damage to make mitigation improvements. Generally, borrowers have 2 years after loan approval to request an increase for higher rebuilding costs, code-required upgrades or mitigation. People who apply for an SBA loan and are approved are under no obligation to accept a loan. Projects to consider: Flood Mitigation

• seal your roof deck
• landscape your property to improve water runoff and drainage
• elevate structures
• relocate your home or business outside the flood plain
• add a sump pump
• convert your lowest floor to flexible space less likely to be damaged in a flood

Wildfire Mitigation

• install a Class A fire-rated roof
• install ⅛-inch mesh screening over all vents to keep embers out of eaves and vents
• install noncombustible gutters, fences and gates
• remove roof and gutter debris that can be ignited by airborne embers
• replace single-pane windows with dual- or multi-pane tempered glass windows

Wind Mitigation

• strengthen structures to protect against high wind damage
• brace or upgrade to wind-rated garage doors
• upgrade to pressure-rated windows
• install hurricane roof straps
• install a safe room or storm shelter built to FEMA guidelines

Earthquake Mitigation

• strengthen and retrofit masonry buildings and concrete facilities that are vulnerable to ground shaking
• install window film to prevent shattered glass injuries
• anchor rooftop-mounted equipment

Is There Help Available for Refinancing? -SBA can refinance all or part of prior mortgages that are evidenced by a recorded lien, when the applicant (1) does not have credit available elsewhere, (2) has suffered substantial uncompensated disaster damage (40 percent or more of the value of the property or 50% or more of the value of the structure), and (3) intends to repair the damage. -Homes – Homeowners may be eligible for the refinancing of existing liens or mortgages on homes, up to the amount of the loan for real estate repair or replacement. Are There Insurance Requirements for Loans? To protect each borrower and the Agency, SBA may require you to obtain and maintain appropriate insurance. By law, borrowers whose damaged or collateral property is located in a special flood hazard area must purchase and maintain flood insurance. SBA requires that flood insurance coverage be the lesser of 1) the total of the disaster loan, 2) the insurable value of the property, or 3) the maximum insurance available. For Maui wildfire specific information and to download applications, visit https://www.sba.gov/hawaii-wildfires. Additional email address: [email protected] Applicants can contact the customer service number at (800) 659-2955 or go to the disaster recovery centers for assistance with disaster loan closings, the application process, reconsiderations, and the status of their applications. Those that have been declined for a disaster loan may submit a reconsideration request by following the instructions on the decline letter. For people who are deaf, hard of hearing, or have a speech disability, please dial 7-1-1 to access telecommunications relay services. Applicants may apply online, receive additional disaster assistance information and download applications at https://disasterloanassistance.sba.gov/ela. Completed applications should be mailed to US Small Business Administration, Processing and Disbursement Center, 14925 Kingsport Road, Fort Worth, TX 76155.