What's new

SBA disaster lian for damage to house

I got a PPP loan through my bank and the SBA. There were affidavits I had to sign that say the loan will be used as intended under threat of personal criminal penalties.

Where are you headed with this? Do you need to repair your home or did someone else's get damaged?
I need to repair our home. We expect to get partial coverage from insurance and what's not covered we will be using the sba loan. The affidavit is one area I was headed with this. I have read that the mortgage company may disperse a deposit to a contractor then pay the balance when complete. That's great except for when the insurance is short and the sba covers the rest. I also read the sba may act in the same manor as the mortgage co. the way they dispersefunds. It sounds like a cluster f. We don't know anything as of today. We hope to get a insurance check today that has to be sent to the mortgage co. then we will learn their process. The sba will be a couple more weeks I think. Hopefuly they do the affidavit route.
It's been over 6 weeks with tarps on the roof. Our insurance is not renewing anyone on the area leaving us with a damaged house, no check and no insurance dec 1st. It complicates things getting a new policy with existing damage. I need to be able to hire people without a babysitter. Hundreds of people need roofs right now. We are expecting a check today or tomorrow but we expected one last week and the week before so we will see.
My post is mainly about how the sba funds are received and on a side note when a mortgage co. gets the insurance check how does that work out?
Just be sure the loan paperwork is correctly filled out and truthful!

A friend of mine was almost prosecuted on federal loan fraud for using the loan money to repair the house he had just moved out of. He DID claim the property as his primary residence while he was living in another state. Without a doubt he was guilty and was on his way to becoming someones wife.

At the last min they chose not to charge him because of a small loan application mistake on their end. He had to repay the loan on an accelerated schedule, as in 1 payment right now to avoid prosecution:lmao:

Keep meticulous records and be honest! Best of luck and :flipoff: insurance companies!
After our house burned, we were headed down the SBA loan road to purchase another home. Every time it seemed like we were done and approved more paperwork would come up. We eventually just gave up with them and went on our own.

Hopefully you have better luck.
It seams like such a mess working with the insurance going through the mortgage co. I can't imagine trying to cordinate the sba, the mortgage co and a contractor. It sounds like good times ahead. Where if we get the check we could pay a deposit, get the work done and pay the balance. I guess that would be too easy.
Just know that when the MTG co gets the funds they can also dictate the type/ level of repair and disbursement becomes a big issue.
In my experience the SBA does everything possible from every angle to stop you from getting a loan through them. Good luck.
In my experience the SBA does everything possible from every angle to stop you from getting a loan through them. Good luck.

They sent a email saying it should be going to closing in the next 7-10 days. Who knows though. Nothing surprises me at this point dealing with the insurance co.
Top Back Refresh