The Small Business Administration (SBA) is not just for businesses recovering from the floods, said Richard Daigle, communications specialist.

Homeowners and renters should apply as well, he said.

For anyone who sustained losses, it should be a two-step process: register with FEMA, then apply for the SBA loan. They are two separate actions, Daigle said.

The SBA is part of a response team that provides counselors at disaster recovery centers as soon as they are opened.

It works closely with the Federal Emergency Management Agency (FEMA) to provide funds for those suffering losses from major disasters, according to Daigle. It is the primary source of federal funds for long-term recovery assistance, he added.

“Any time there’s a federal declaration for disaster assistance, SBA is there,” he said.

Many people are confused or misled because of the word “business” in the name. And many are turned off or afraid because the SBA offers loans instead of grants. But Daigle said people should apply anyway.

The SBA offers loans with interest rates as low as 2.75 percent in some instances and with no closing costs, he said. The loans cover uninsured losses, and there is no duplication of benefits between the SBA and insurance companies.

SBA loans typically cover the leftover amount after grant money has been extended because most people don’t have flood insurance. Loan amounts for homeowners may be as much as $200,000 for the real estate and another $40,000 for personal contents. In some instances, the SBA can help with refinancing, Daigle said.

Renters may qualify for loans up to $40,000 for personal contents, and businesses may qualify for loans up to $2 million with interest rates as low as four percent. For businesses, this covers physical damage and economic injury, according to Daigle.

“It fills in the gap for the uninsured losses,” he said.

Daigle acknowledges that people don’t have to take the loan. For one, it is not a forgivable loan; it has to be paid back.

But Daigle said it is a very important option for rebuilding. He said it is flexible; people have a period of time to decide after they are approved if they want to take out the loan.

And while Daigle recognizes that some people might not qualify for the loan due to the economy, he said it is still important that they apply. It opens other options, even if the loan is not approved.

“If we are unable to qualify them for the loan, we automatically refer them back to FEMA for more grant money,” he said. “We want to put people in a position where they can get the maximum amount of public assistance and the most federal dollars.”

Anyone with flood damage may register online at disastercustomerservice@sba.gov, www.sba.gov/services/disasterassistance or 800-659-2955.