re: So who got declined for a SBA loan?

I would doubt their story. My parents are regular working class folks. Step dad is retired from the state & mom works at a Dr's office on a hourly wage. SBA approved them for $150k 25 year loan @ 1.5something%

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Just another way to rip off the hardworking responsible citizens and give more to the uneducated lazy arse poor credit if any leaches in this country.

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You are correct sir.

It is plausible that someone with excellent credit and financial means could be "denied" SBA help if the SBA determines that they have conventional, private credit available to them. The SBA explicitly states that it is to be used as a credit source of last resort for disaster relief, and if the SBA believes you have other options available, they can deny the request.

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I imagine there could be some that would get an SBA loan to pay off their mortgage. Thus being able to save the difference.

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I'm still not exactly sure how they did this to this day, but after Katrina, my in-laws house flooded to the roof. They had flood insurance. Gutted the house and sold it. Took majority of money from flood insurance and used that to pay off the mortgage on the just-sold gutted house. Moved out of town. Bought a new house. Put 10 percent down and got an SBA loan for the 90 percent balance. Has a 30 year "mortgage" with SBA at a rate of 1.5 percent.

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I'm hearing a lot of my neighbors got declined and they don't know why

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My understanding of SBA loans for disaster situations is that a couple of ideas are in play.

1) If they can get credit through a bank, they normally will not do the loan.

2) if their credit isn't that great, they are more concerned with the ability to repay more so than the credit score. If they can't repay the loan, they will deny it.

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I'm still not exactly sure how they did this to this day, but after Katrina, my in-laws house flooded to the roof. They had flood insurance. Gutted the house and sold it. Took majority of money from flood insurance and used that to pay off the mortgage on the just-sold gutted house. Moved out of town. Bought a new house. Put 10 percent down and got an SBA loan for the 90 percent balance. Has a 30 year "mortgage" with SBA at a rate of 1.5 percent.

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that sounds like fraud

SBA had requested some documentation last week before they could process the application... Sent it in yesterday and my application was promptly DENIED.

I had flood insurance on the building, but no contents. Was hoping to use a SBA loan to replace contents, as I had just moved into the house a few months ago and bought all new furniture and electronics... On a credit card that I am still paying on.

I'll be appealing to see what th deal is

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Said if their credit scores were less, the interests would be less. Wtf?!

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I have heard this same claim. SBA loan rates are based on your ability to pay it back. It was explained that if they determine you can pay more interest, then they will make you pay more.

That's fricked up!