The U.S. Small Business Administration (SBA) has issued a reminder to small businesses, nonprofits, homeowners, and renters affected by Hurricanes Helene and Milton that the clock is ticking on the federal disaster loan application deadline. According to an announcement by the City of Sarasota published yesterday, there's a due date of April 27 to apply for physical damage recovery funds. The SBA is determined to ensure that those in need from states like Florida, Georgia, and the Carolinas, among others, are aware of the assistance available to them to begin to potentially rebuild and recover from these devastating storms.
Entities can apply for up to $2 million in business physical disaster loans, which aim to repair or replace real estate, machinery, and other business assets that took a hit. Moreover, Economic Injury Disaster Loans are offered to help cover working capital needs sparked by the disaster, regardless of whether a business sustained physical damage. These loans can to be used for multiple purposes, including paying off debts or covering payroll. The SBA is stressing the importance of not waiting for insurance settlements before seeking out these loans, promising it can make a low-interest disaster loan for the total loss, within its limits, and expecting the borrower to use insurance proceeds to reduce or repay the loan later on.
For those looking to make their homes and business premises more resilient to future calamities, the SBA offers a loan increase of up to 20% for certain mitigation upgrades. This includes structural reinforcements and the installation of safety features like storm shelters, noted Chris Stallings, associate administrator of the Office of Disaster Recovery and Resilience at the SBA. "One distinct advantage of SBA’s disaster loan program is the opportunity to fund upgrades reducing the risk of future storm damage," Stallings said, urging survivors "to work with contractors and mitigation professionals to improve their storm readiness while taking advantage of SBA’s mitigation loans," according to the City of Sarasota.
Terms for these low-interest disaster loans can stretch up to 30 years with interest rates as low as 2.813% for homeowners and renters, and payments don't start to come due until a full year after the first disbursement. The SBA decides on the loan amounts and terms based on each applicant’s financial condition. Applications can be filled out online at the SBA’s website or through assistance from their Customer Service Center, accessible by phone or email. The administration also provides telecommunications relay services for individuals who are deaf, hard of hearing, or have a speech disability.
While the April 27 deadline looms for applications related to property damage claims, deadlines for economic injury applications vary by state. The dates range from June through September, providing a broader window for businesses to assess and respond to the economic impacts of the storms.
