Q&A courtesy of the Saipan Chamber of Commerce with Raenada A. Mason, public affairs specialist with the U.S. Small Business Administration. Mason is currently in Saipan. The SBA will be assisting businesses and residents at the Survivor Recovery Center at the Governor Pedro P. Tenorio Multi-Purpose Center.
Other participating offices are the Federal Emergency Management Agency Individual Assistance, the American Red Cross financial aid, and Disaster Unemployment Assistance of the NMI Department of Labor.
Q: How complicated is the application paperwork?
A: The application is not complicated. The most tedious part is getting your profile set up. If you're a first-time individual since COVID when all the fraudulent activity was happening, we created what's called a unified lending program. And it requires that you do the verification of yourself. To be honest, that's probably the most tedious part — crossing that fence. Once you cross that, then you will be able to go through the application process smoothly.
[At the Survivor Recovery Center] We will have representatives here to allow assistance in person. However, if you're able to move forward with applying online, we encourage that. Also, if you get stuck and you're like, you know what, I want to wait to talk to someone, then you can do that as well. But the process itself is not a long process.
Q: Can office staff apply for a business owner or does the owner need to be involved in order to verify who he is?
A: Yes. That part would be up to you. If you're giving that person authorization to do it, they can apply on your behalf, but you still will be required to do the verification portion. So again, if you're wanting a staff member to do it for you, perhaps create the profile yourself first and then once you create that profile, then pass that over to them and let them take over from doing the application for you.
Q: Can you speak about loan approval amounts and limitations?
A: Renters can apply for up to 100,000 because being a renter you're not responsible for repairs or replacement of real estate. For homeowners, we have two categories: ● Up to 500,000 for real estate ● Up to 100,000 for personal property. Nonprofits can receive assistance up to $2 million. Businesses may receive up to $2 million as well for economic injury and also physical damage. However, if you are a business or a nonprofit that is seeking both economic injury and physical, it is a combined $ 2 million — not $ 4 million.
Q: Can we qualify for SBA loan if we already have a credit facility from a commercial bank?
A: If you're seeking SBA funding to pay off or cover that, the answer is no. You cannot use that to pay off existing debt. The funding is specifically for disaster related purposes. However, you can use SBA funding to assist with your existing financial obligations monthly, but you cannot take that money and just pay off that debt completely.
Q: For small businesses, can you explain what qualifies as economic injury?
A: Economic injury is anytime you have an interruption in your business. For example, businesses being closed due to lack of power, reduced tourism, or inability to operate normally. If the disaster had not happened, you would still be able to pay payroll, financial obligations, and healthcare benefits. Even if you reopened quickly, there is still a delay in normal operations, and that qualifies as economic injury.
Q: What kind of real estate property damage is covered? Can damage access to my home be covered?
A: Yes, absolutely. That includes debris removal, repairs to fencing, landscaping, exterior and interior damage, driveways and even insurance deductibles. All of that can be covered under the funding.
Q: How long is the approval process?
A: The time frame is based on you. Once you submit your application, you will receive alerts if additional documents are needed. Typically, you have about a five-day timeframe to upload them. The process can take about seven to 10 business days, but it can be delayed depending on how quickly you provide the requested documents.
Q: Are SBA loans only open for U.S. citizens?
A: SBA loans are also open to permanent residents and certain non-citizen nationals. We are encouraging individuals who are unsure to connect with us to review their situation and provide the most accurate guidance possible. It’s important to note that even if someone has a Social Security number or files taxes locally, eligibility is still based on immigration status as defined by SBA program requirements.
Q: Can I apply for both my home and my business?
A: Yes. Once you create your profile, you only have to do that once. Then you can submit separate applications for your home and your business under the same profile.
Q: Do we need contractor estimates before applying?
A: I would not suggest that you wait. You can provide guesstimates of your repair costs. It does not have to be exact. Loss verifiers will later determine the actual amounts, and your loan officer will review everything with you.
Q: Is there an age limit?
A: Yes. You must be at least 18 and show the ability to repay.
Q: Does credit history affect the loan amount or interest?
A: Yes, it can. Most applicants receive 2.875%. Some may receive 5.75% if they are able to obtain credit elsewhere. However, if you are given a higher rate, you can submit justification to request reconsideration.
Q: When does the one-year deferment start?
A: The one-year deferment starts once you receive your first disbursement. There are no payments and no interest accrual during that one-year period.
Q: Who applies for a leased property?
A: The person responsible for the repairs applies. If the landlord is responsible for the building, they apply. If you are responsible for your personal property, you apply for that. If your lease requires you to handle repairs, you may apply but will need to provide documentation.
Q: Are we required to accept the full loan amount?
A: No. You are not obligated to accept the loan or the full amount. You can take a lesser amount, and you have up to two years to request an increase.
Q: What are the deadlines?
A: The Physical damage deadline is June 22, 2026; The Economic injury deadline is January 25, 2027
Q: How do we contact you directly?
A: Raenada Mason. (240) 782-1540, from 8 a.m. to 6 p.m. only. mbj
Other participating offices are the Federal Emergency Management Agency Individual Assistance, the American Red Cross financial aid, and Disaster Unemployment Assistance of the NMI Department of Labor.
Q: How complicated is the application paperwork?
A: The application is not complicated. The most tedious part is getting your profile set up. If you're a first-time individual since COVID when all the fraudulent activity was happening, we created what's called a unified lending program. And it requires that you do the verification of yourself. To be honest, that's probably the most tedious part — crossing that fence. Once you cross that, then you will be able to go through the application process smoothly.
[At the Survivor Recovery Center] We will have representatives here to allow assistance in person. However, if you're able to move forward with applying online, we encourage that. Also, if you get stuck and you're like, you know what, I want to wait to talk to someone, then you can do that as well. But the process itself is not a long process.
Q: Can office staff apply for a business owner or does the owner need to be involved in order to verify who he is?
A: Yes. That part would be up to you. If you're giving that person authorization to do it, they can apply on your behalf, but you still will be required to do the verification portion. So again, if you're wanting a staff member to do it for you, perhaps create the profile yourself first and then once you create that profile, then pass that over to them and let them take over from doing the application for you.
Q: Can you speak about loan approval amounts and limitations?
A: Renters can apply for up to 100,000 because being a renter you're not responsible for repairs or replacement of real estate. For homeowners, we have two categories: ● Up to 500,000 for real estate ● Up to 100,000 for personal property. Nonprofits can receive assistance up to $2 million. Businesses may receive up to $2 million as well for economic injury and also physical damage. However, if you are a business or a nonprofit that is seeking both economic injury and physical, it is a combined $ 2 million — not $ 4 million.
Q: Can we qualify for SBA loan if we already have a credit facility from a commercial bank?
A: If you're seeking SBA funding to pay off or cover that, the answer is no. You cannot use that to pay off existing debt. The funding is specifically for disaster related purposes. However, you can use SBA funding to assist with your existing financial obligations monthly, but you cannot take that money and just pay off that debt completely.
Q: For small businesses, can you explain what qualifies as economic injury?
A: Economic injury is anytime you have an interruption in your business. For example, businesses being closed due to lack of power, reduced tourism, or inability to operate normally. If the disaster had not happened, you would still be able to pay payroll, financial obligations, and healthcare benefits. Even if you reopened quickly, there is still a delay in normal operations, and that qualifies as economic injury.
Q: What kind of real estate property damage is covered? Can damage access to my home be covered?
A: Yes, absolutely. That includes debris removal, repairs to fencing, landscaping, exterior and interior damage, driveways and even insurance deductibles. All of that can be covered under the funding.
Q: How long is the approval process?
A: The time frame is based on you. Once you submit your application, you will receive alerts if additional documents are needed. Typically, you have about a five-day timeframe to upload them. The process can take about seven to 10 business days, but it can be delayed depending on how quickly you provide the requested documents.
Q: Are SBA loans only open for U.S. citizens?
A: SBA loans are also open to permanent residents and certain non-citizen nationals. We are encouraging individuals who are unsure to connect with us to review their situation and provide the most accurate guidance possible. It’s important to note that even if someone has a Social Security number or files taxes locally, eligibility is still based on immigration status as defined by SBA program requirements.
Q: Can I apply for both my home and my business?
A: Yes. Once you create your profile, you only have to do that once. Then you can submit separate applications for your home and your business under the same profile.
Q: Do we need contractor estimates before applying?
A: I would not suggest that you wait. You can provide guesstimates of your repair costs. It does not have to be exact. Loss verifiers will later determine the actual amounts, and your loan officer will review everything with you.
Q: Is there an age limit?
A: Yes. You must be at least 18 and show the ability to repay.
Q: Does credit history affect the loan amount or interest?
A: Yes, it can. Most applicants receive 2.875%. Some may receive 5.75% if they are able to obtain credit elsewhere. However, if you are given a higher rate, you can submit justification to request reconsideration.
Q: When does the one-year deferment start?
A: The one-year deferment starts once you receive your first disbursement. There are no payments and no interest accrual during that one-year period.
Q: Who applies for a leased property?
A: The person responsible for the repairs applies. If the landlord is responsible for the building, they apply. If you are responsible for your personal property, you apply for that. If your lease requires you to handle repairs, you may apply but will need to provide documentation.
Q: Are we required to accept the full loan amount?
A: No. You are not obligated to accept the loan or the full amount. You can take a lesser amount, and you have up to two years to request an increase.
Q: What are the deadlines?
A: The Physical damage deadline is June 22, 2026; The Economic injury deadline is January 25, 2027
Q: How do we contact you directly?
A: Raenada Mason. (240) 782-1540, from 8 a.m. to 6 p.m. only. mbj
