SBA Disaster Loans Available to Webster County Residents

For some Webster County families, the damage left behind by April’s severe weather did not end when the storms moved out.

Homes, vehicles and other personal property were damaged during the severe storms, tornadoes and flooding that hit southwest Missouri April 23 through April 28. Now, residents and businesses still trying to recover may have another option for financial help.

The U.S. Small Business Administration is offering disaster loans in several southwest Missouri counties, including Webster County.

Anita Bing, public affairs specialist with the SBA Office of Disaster Recovery and Resilience, said Greene County is the primary county covered by the disaster declaration. Webster, Christian, Dade, Dallas, Lawrence and Polk counties are included as contiguous counties.

That makes homeowners and renters in Webster County who suffered physical damage eligible to apply for assistance.

And despite the agency’s name, Bing said SBA disaster assistance is not just for businesses.

“Most of our loans are given to individuals,” Bing said.

The loans can help with damage to a home, personal property and even vehicles. That could make a difference for families who discovered their insurance did not cover everything lost or damaged in the storms.

“Most people do have insurance, but at times the insurance does not cover all that’s needed to repair and replace a vehicle or a damaged home,” Bing said. “SBA loan dollars can fill that gap that they’re experiencing.”

Residents do not have to wait for their insurance company to finish processing a claim before applying.

Bing said the SBA’s goal is to get money into the hands of disaster survivors as quickly as possible. Applicants can continue negotiating with their insurance company while the SBA loan process moves forward.

Once an insurance settlement is completed, those insurance proceeds can be used to pay down the SBA loan balance.

Businesses affected by the storms may also qualify for help.

Businesses with physical damage can apply for disaster loans. Small businesses, agricultural cooperatives and nonprofit organizations that suffered an economic hit because of the storms may also apply for working capital assistance.

For example, a business struggling to make payroll or pay regular bills because of lost income following the disaster may be able to use the program to help stay afloat.

Bing said interest rates can be as low as 2.875% for home disaster loans and 4% for business loans. Rates for nonprofit organizations seeking physical damage assistance can be as low as 3.625%.

There is no fee to apply.

Another feature gives borrowers some breathing room after receiving a loan. Bing said the first payment is not due for 12 months after the loan is finalized. There is also no penalty for paying the loan off early.

The SBA can provide additional assistance for improvements intended to better protect property from another disaster.

Eligible borrowers may be able to receive up to an additional 20% of their physical damage amount for mitigation projects. That money could be used for improvements such as storm shelters, sump pumps or retaining walls.

For Webster County residents who are still dealing with damage months after the April storms, Bing encouraged them to look into the program rather than assume they do not qualify.

Applications can be submitted through the SBA disaster lending portal. Additional information is available through the U.S. Small Business Administration.

Applicants with questions can call 1-800-659-2955. Those who are deaf, hard of hearing or have a speech disability can dial 711 to access telecommunications relay services.

As of April 12, SBA has approved $2,065,400 in loans.