How CDBG DR policy and SBA Loans as Duplication of Benefits DOB started back in 2011.

The grantee should identify the full amount of assistance for which the applicant was approved 30,000.

By Murray Wennerlund published 3-30-2018 updated 3-12-2023

How CDBG-DR policy and SBA Loans as Duplication of Benefits DOB all started 2011

71062 Federal Register / Vol. 76, No. 221 / Wednesday, November 16, 2011 / Notices

Grantees should also identify reasonably anticipated assistance, such as future insurance claims or approved SBA loan proceeds. Reasonably anticipated funds include assistance that has been awarded, but has not yet been received. For example, assume a business was approved to receive an SBA loan for $30,000, but had only received $20,000 when it applied for CDBG disaster recovery assistance for the same purpose. The grantee should identify the full amount of assistance for which the applicant was approved ($30,000).

Note: HUD has clarified the wording for Grantees since 2011, in 2013 a letter went to Sandy CDBG-DR people clearly stating if the SBA Loan was declined it was not to be counted if the reason was good. But the new wording in our new law will be better, it doesn't allow the OCD-DR people to interpret anything, you declined, it's not DOB.

Within the 71062 Federal Register you'll find.

Snipped from Federal Registry

B. Treatment of SBA Loans. CDBG disaster recovery funds should not be used to pay down an SBA home or business loan. In cases where initial SBA loan amounts approved based on estimated costs are later determined to be inadequate relative to the actual costs to complete home repairs or reconstruction, the SBA will consider re-evaluating an applicant's maximum eligibility to explore if additional assistance may be provided. This also applies to recipients of SBA business loans (including loans for working capital). If need remains after all SBA eligibility has been exhausted, supplemental disaster recovery CDBG funds may be used to address that need.

What you will need to do is go back to the SBA loan you accepted and request additional money as a loan to complete your repairs. If you had to take a person loan or a private loan which are not DOB you can use the lower interest loan to pay off any non DOB loans from my understanding of the rule.

If at that point your SBA Loans do not cover all of your reconstruction / rebuild costs you then can ask for CDBG funds as stated in part B.

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SBA contacts assigned to HUD Guidance June 20, 2019 SBA loan payoff El Paso Servicing Office

HUD Guidance June 20, 2019 outlines who and what SBA loans will be paid in full using HUD CDBG-DR federal grants and the El Paso Servicing Office office of the SBA is managing the process.

By Murray Wennerlund published 11-1-2022 updated 11-1-2022
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SBA Repayment Reports published by phase for the State of Louisiana.

Shared information from the state of Louisiana Office of Community Development - Disaster Recovery Unit and the Department of Administration regarding the processing of US Treasury disbursements of HUD funds used to repay SBA loans.

By Murray Wennerlund published 11-1-2022 updated 11-1-2022
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Homeowners Demand SBA Status and Code Review, SBA DOB experience

The SBA Fix didnt come quick enough for those wrongfully labeled ineligible for HUD CDBG-DR grants that cover unmet needs after the disaster. Many remained homeless and are still homeless today because of the lack of concern from state managers.

By Murray Wennerlund published 11-1-2022 updated 11-1-2022
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Decline Code 34 Credit is available elsewhere.

SBA to determine whether credit in an amount needed to accomplish full disaster recovery is available from nongovernment sources on reasonable terms and conditions without creating an undue financial hardship.

By Murray Wennerlund published 10-31-2022 updated 10-31-2022
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Borrower may not use an oral statement of SBA to contradict or alter the written terms of this Note.

What the SBA customer representative says or what your loan officer says will not change the LAA section that is the loan note. Be sure you understand and read your LAA and understand your promissory note.

By Murray Wennerlund published 10-23-2022 updated 10-23-2022
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FEMA Individual and Households Program IHP Grants explained Part 1 of 2

By Murray Wennerlund 10-30-2024

FEMA may have awarded you up to 42,500 in Individual and Households grants called IHP and they may have listed that this grant is for Home Repairs. Your letter will say home repairs and you might think everything in your home is repairable, right?

FEMA Applicants may appeal the following, Eligibility, Amount, Cancellation, Rejection, denial of assistance.

By Murray Wennerlund 10-28-2024

Applicants must file their appeal within 60 days after the date that we notify the applicant of the award or denial of assistance. This article provides example appeals in proper FEMA appeals format. If you need one on one from us use the contract form.

RV and Travel Trailers used as primary residence home do qualify for IHP up to $42,500 from FEMA

By Murray Wennerlund 10-28-2024

Those who live full time in RV and Trailers can and should apply for IA and IHP if your RV or trailer was damaged in a federally declared disaster specifically a flood disaster.