Small Business Administration Loans for Home Owners, Renters, Business Owners and or Nonprofits who suffered damage from the Flooding & or Tornado that occurred in September.
Please see the information below about the assistance available from the Small Business Administration (SBA) to Business Owners and or Nonprofits who suffered damage from the Flooding & or Tornado that occurred in September. The deadline to apply for Economic Injury is October 7th. We are also helping Business Owners and Nonprofits with the recent Bridge Closure that occurred in December, deadline to apply for Bridge Closure is September 16th 2024.
Some features of the SBA Disaster Loans:
--SBA Disaster Loans cover the cost of damages not covered by insurance or another source
--Businesses and non-profits can borrow up to $2 million, for physical damage (including equipment, inventory, etc.) and/or economic injury
--Even if a business owner does not have physical damage, they can still borrow money to provide working capital, if they had a significant drop in sales as a result of the disaster.
--No interest or payments for the first year of the loan
--No cost to apply. No closing costs. No prepayment penalties.
-- If waiting for an insurance settlement, a business or homeowner can get an SBA loan to allow them to start repairing damage and replacing inventory or personal property, and once the insurance money arrives, it is used to pay off the loan. Thus, it can be used as a bridge loan while waiting for insurance, and if paid off within a year, it is a free loan. (The State offers a 1-year bridge loan with no interest to businesses, but if it is not repaid in one year, the interest rate is much higher). Our loan is free for the first year, and then 4.0% interest with up to a 30-year term, making it a lot easier to repay.
--An SBA loan can also be used to cover an insurance deductible, and one can request an additional 20% of total estimated damage to be used for mitigation to prevent future damage. (sump pump, retaining wall, elevation, safe room, stronger shingles, etc.)
--If offered a loan, you have 2 months to decide whether or not you want to accept it. Apply now. Decide later.
--Loan terms can be up to 30 years, with relatively small payments.
--At an interest rate of 4% for most businesses, and 2.5% for most homeowners, renters and non-profits, it is much better than ending up using a credit card or other source to cover operating expenses or repairs.
--Home loans are for one’s primary residence, but if someone owns a rental property, earns rental income and pays taxes on that rental income, like a business, they can apply for a business loan to fix damage to the rental property.
For homeowners and renters with damage, it is important for everyone to register with FEMA first, to see if they can get some grant money. FEMA focuses on those most in need, and to ensure everyone has as safe and secure place to live. This includes possibly getting rental assistance for a place to stay for 1 or 2 months if the home is not habitable/safe to live in. But assistance for personal property (the contents of the home) is prioritized for those most in need. After registering with FEMA, those above a certain income level may receive a letter saying they have been referred to the SBA. FEMA may still help with temporary housing and basic repairs if the home is not habitable. However, if someone is referred to the SBA, it is very important for the person to follow through and apply for a loan, even if they do not want one. If the loan is denied, they may be referred back to FEMA for possible additional grant assistance for personal property, including cars. FEMA funding does not repair or replace everything like insurance would but provides the basic necessities. And if their no-cost SBA loan application is approved, they have 2 months to decide whether they want or need it. (Apply now. Decide later.)
If you have damage not covered by insurance, or if they do not yet know how much will be covered by their insurance company, they should apply now and decide later, before the March 7th deadline.
SBA is a disaster survivor’s long-term federal recovery partner. The loans enable people to repair, rebuild or replace their damaged or destroyed real estate, machinery and equipment, inventory, and other business assets.
We can help with uninsured and underinsured losses, along with insurance deductibles, gap insurance, debris removal, fences, mitigation, storm shutters, house-raising, many things for which insurance does not normally provide protection.
There is no need to wait for settled insurance claims, potential FEMA grants or contractor estimates before applying. We encourage survivors to apply as soon as possible—and there is no obligation if they change their minds later.
U.S. SMALL BUSINESS ADMINISTRATION FACT SHEET - DISASTER LOANS
Disaster Loans for Businesses and Non-Profits
Disaster Loans for homeowners and renters
Economic Injury Disaster Loans for Businesses and Non-Profits