We all get cross when we think about people who "Work the system" to get plenty for nothing, so this news about people who actually need help missing out because they don't know this little quirk in the system caught my interest.
Remember the prison warden in the 1967 movie Cool Hand Luke? One of his favorite phrases was "What we've got here is failure to communicate."
And that's exactly what's keeping some Texas disaster victims from receiving aid.
After disaster victims register with FEMA, they may receive an application for a low-interest disaster loan from the SBA. Those who ignore the application because they don't want to take out a loan are then missing out on FEMA grants that could be available to them.
It turns out that filling out the SBA loan application is a necessary step toward receiving disaster assistance to repair or replaced damaged or destroyed personal items, such as clothing and automobiles. Filling out the application does not obligate the individual to accept a loan, should it be offered.
But if you need to rebuild, why wouldn't you accept this kind of loan?
SBA loans of up to $200,000 per home and up to $2 million per business are available. Even tenants are eligible for up to $40,000 to repair or replace personal property - and at an interest rate as low as 1.688%.
The SBA is the federal government's primary source of funding for disaster loans, which cover uninsured and uncompensated losses. The SBA loans and grants do not duplicate benefits of other agencies or organizations.
To learn more about the application, call the SBA Customer Service Center at 1-800-659-2955 or go online to disasterloan.sba.gov/ela
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