Restore Louisiana expands SBA loan repayments for August 2016 floods

Restore Louisiana expands SBA loan repayments for August 2016 floods
Aerial view of area affected by August 2016 flood

BATON ROUGE, La. (WAFB) - Some Louisiana homeowners, who are still paying back a loan from the Small Business Administration (SBA) they received following the August 2016 floods, will be receiving assistance with their payments.

The Louisiana Office of Community Development announced Friday, May 8, that the Restore Louisiana Homeowner Assistance Program is working with almost 2,800 applicants to determine who is eligible for assistance.

Under the HUD-approved hardship criteria, homeowners may be eligible for a hardship exception if they can demonstrate they spend more than 30% of their gross household income on housing expenses, including monthly mortgage payment, homeowners’ insurance, flood insurance, property taxes, and monthly SBA loan payments, or that they spend more than 15% of their discretionary income on their SBA loan repayment.

OCD proposed additional hardship criteria to HUD but these are the only exceptions approved at this time.

Restore reported if all 2,800 homeowners qualify for a hardship exception, it will be able to assist them in paying off a total of more than $46 million in SBA loans.

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