Wayne County residents receive third-highest amount of SBA loans
By Rochelle Moore
Published in News on November 11, 2016 10:03 AM
Wayne County residents have received the third-highest amount of U.S. Small Business Administration loans in the state to help with Hurricane Matthew recovery efforts.
The federal program, which works hand-in-hand with the Federal Emergency Management Agency in major disaster areas, has provided nearly $3.3 million to Wayne residents and business owners, according to the SBA.
Statewide, the SBA has approved $27.3 million in low-interest loans, designed to help business owners, homeowners and renters recover from unanticipated loss.
"SBA's mission is to get people back to what they were prior to the disaster, and that's what the loan is for," said Angel Class, SBA public affairs specialist working in Wayne County.
"This county is like No. 3 in the state for SBA. (There's) a lot of damages."
Cumberland County has received the highest amount of loan assistance, at $6.5 million, followed by Robeson County, with nearly $4.6 million. Edgecombe County has received $1.9 million, Lenoir, $1.7 million, and Pitt, $1 million.
SBA applications are still being received at the FEMA disaster recovery center, housed in the W.A. Foster Center, at 1012 S. John St., or by calling (800) 659-2955. Applications will be accepted through Dec. 9, a date that could be extended, Class said.
The FEMA center is open Monday through Saturday from 9 a.m. to 6 p.m. FEMA can also be reached at (800) 621-3362.
In addition to home and business loans, the SBA offers economic injury loan assistance for small businesses, small agricultural cooperatives, small aquaculture businesses and most nonprofits, of all sizes. The loans help with financial obligations that cannot be met as a direct result of the disaster. Applications for economic injury will be accepted through July 10.
Class said many people avoid the federal loan program and others delay making a decision because of uncertainty.
"Everywhere that I've worked, people are afraid of a loan, but they use their credit cards," Class said. "We want to actually help people out. It's not mandatory, but you may be leaving money on the table.
"Right now, people are going through trauma. We know there's more people to apply, and they have not."
The SBA can provide up to $200,000 to homeowners for structural damages and up to $40,000 for personal property losses, including vehicles, Class said. Renters can also receive up to $40,000. The loans are offered up to 30 years with interest rates as low as 1.5 percent.
Businesses and nonprofits can receive up to $2 million, with interest rates as low as 2.6 percent for nonprofits and 4 percent for businesses. Up to $2 million is also offered through the economic injury loan program, with interest rates near 2.6 percent for nonprofits and 4 percent for small businesses and agricultural cooperatives.
Applicants who are not approved for an SBA loan are automatically referred back to FEMA where additional grant assistance could be approved, Class said.
FEMA has already received more than 5,300 applications for grant assistance in Wayne County and distributed more than $6.2 million in assistance to area residents, said Mike Wade, FEMA spokesperson.
"If you're not approved for a loan, you may be referred back to FEMA for other programs," Class said. "This is what people don't understand, and they may be leaving money behind."
Applicants approved for an SBA loan have eight to 10 months to decide if they want to accept the loan, the first $25,000 does not require collateral, and the first loan payment is five months after agreeing to the terms, Class said.
The SBA will determine if applicants qualify and if the loan can be repaid.
"They don't want to put people in a harsh way," Class said.
Having insurance coverage on a home or business should not prevent anyone from applying with the SBA, Class said. If an SBA loan is accepted and an insurance payment is received, the insurance payment will need to be turned over to the SBA.
"They will have to sign over insurance payments so they're not double-dipping," Class said.
In Wayne County, as of Wednesday, the SBA has approved $2.8 million in home loans for 69 people and $394,800 in business loans to seven applicants. One economic injury loan has been approved, providing the applicant with $21,600.
A total of 323 SBA applications have been received by the SBA in Wayne County, with 77 approved.
FEMA has not set a date for closing its disaster recovery center in Wayne County, but the last day to apply for individual FEMA grant assistance is Dec. 9, a date that could also be extended, Wade said.