Disaster Loans

When faced with financial recovery from a natural disaster, many homeowners turn to the Federal Emergency Management Agency (FEMA). Col. Kevin Shwedo, South Carolina's state disaster recovery coordinator, says “there’s the perception that FEMA has bottomless pockets, a perception that FEMA is going to solve all of your problems." FEMA spokesman Carl Henderson said that is a “big misconception.” FEMA can award a maximum of $33,000 to each household or individual [1]. This $33,000 cap often fails to fully reimburse households for damage to their property, so some people turn to the SBA and apply for Disaster Recovery Loans. $200,000 The maximum loan the SBA can provide to homeowners to repair or replace their homes is $200,000, and the maximum loan the SBA can provide for homeowners or renters to replace personal property is $40,000. Businesses and private nonprofits can receive loans of up to $2 million. [2]. SBA spokesman Michael Peacock said, “The SBA is basically the nation’s disaster loan bank. We’re here to provide the long-term relief. We [attempt] to get [residents] back to the position that they were in prior to the disaster.”