By Josh Bergeron

josh.bergeron@salisburypost.com

As Port Arthur recovers from Tropical Storm Harvey, the Small Business Administration is publicizing its low-interest loans as valuable financial resources

The SBA provides disaster assistance loans to businesses, homeowners and renters. The agency can refinance all or part of prior mortgages. Disaster loan recipients can also use the money to relocate to another city.

This week, SBA spokesman Susheel Kumar spoke about the financial assistance programs to a group gathered in the Small Business Development Center at Lamar State College — Port Arthur.

Kumar said Federal Emergency Management Agency grants are unlikely to cover all financial and physical damages resulting from Harvey. FEMA also doesn’t assist businesses. Its assistance aims to return people to sanitary conditions immediately, Kumar said. The SBA’s programs are a better long-term solution, he said.

He said the SBA’s financial assistance programs are a “hidden gem.”

Related to Harvey, the SBA has approved 16 business loans in Jefferson County totaling $987,000, according to statistics provided by FEMA. The Small Business Development Center at Lamar State College — Port Arthur has assisted an average of two to three people per day, said Director Linda Tait.

Across Texas, more than $260 million in loans have been provided to businesses and residents affected by Harvey, a news release said.

Kumar said businesses seeking assistance through the SBA will need to provide the following: a schedule of liabilities, one year of tax returns and a 1368 form, which breaks down sales per month.

Programs available through the SBA include:

• Business physical disaster loans

These provide money to repair or replace disaster damage property.

Money can be used to pay for real estate, inventories, supplies, machinery and equipment. Business of any size are eligible. Private and non-profit organizations such as charities and churches are also eligible.

Business loans have a ceiling of $2 million for repair or replacement of real estate.

• Economic injury disaster loans

These provide working capital and also come with a ceiling of $2 million.

• Home disaster loans

These provide money to homeowners or renters to repair or replace disaster-damaged real estate and personal property.

Homeowners can borrow up to $200,000 to replace or repair their primary residents. Homeowners and renters can borrow up to $40,000 to replace personal property, including vehicles.

• Home refinancing

The SBA can refinance all or part of prior mortgages when the person does not have credit elsewhere, has suffered damage equal to 50 percent of the structure or 40 percent of the value and intends to repair damage.

Kumar said people can also apply for disaster loan money that can be used to relocate.

Interest on loans provided by the SBA vary depending on whether people can obtain loans elsewhere. For example, a home loan provided to a person that cannot obtain credit elsewhere comes with a 1.75 percent interest rate. The same loan provided to someone that can obtain credit elsewhere comes with a rate of 3.5 percent.

Loans can come with a term of up to 30 years, but may be restricted to seven years if people can obtain credit elsewhere.

After submitting their application, people should receive a phone call in about 10 business days, Kumar and Tait said. Within 30 days, people who accept a loan should receive money, he said.

He said people should apply for loans even if they will receive insurance money. The insurance check may not cover all repairs that need to be made, Kumar said.

For more information or to apply for an SBA loan, visit disasterloan.sba.gov/ela, call 800-659-2955 or email disastercustomerservice@sba.gov.

Tait said businesses seeking financial assistance could call her office at 409-984-6531.

SBA sites in Jefferson County include: Gateway Plaza (a former Goodwill Store), 3871 Stagg Drive, Unit 166, Beaumont, TX 77701; Lamar University CICE, 5091 Rolfe Christopher Drive, Beaumont, TX 77705; Christus Hospital St. Mary Gates Professional Building (entrance on the back and to the left of the hospital main entrance), 3600 Gates Boulevard Port Arthur, TX 777642.