The U.S. Small Business Administration (SBA) is stepping in to aid North Carolina businesses and residents hit by the devastating effects of Tropical Depression Chantal earlier this month. Following a disaster declaration spurred by Gov. Josh Stein's request last Friday, the SBA is offering low-interest federal disaster loans to those affected by the flooding and tornadoes that took place July 6-13, according to the North Carolina Department of Public Safety.
This financial support spans the primary counties of Durham and Orange, it also encompasses neighboring counties such as Alamance, Caswell, Chatham, Granville, Person, and Wake. Affected parties in these areas are eligible for both Physical Damage Loans and Economic Injury Disaster Loans (EIDLs). Small businesses and private nonprofits who've seen damage or destruction to property can apply for up to $2 million, meanwhile homeowners and renters can borrow funds to repair or replace damaged goods or their primary residence—caps of $100,000 and $500,000 are in place for these loans, respectively.
To further support recovery efforts, the SBA is offering the chance for applicants to secure a loan increase, with the potential for up to 20% of their physical damage — for mitigation improvements. These are designed to bolster structures against future damages and could include reinforcements against wind damage or the addition of safe rooms, "to help protect property and occupants from future damage," per the SBA's statement.
For businesses that didn't experience physical damage but are grappling with financial losses due to the disaster, the SBA's EIDL program may offer some relief. Although agriculture-related enterprises typically fall outside the scope of this assistance, except for small aquaculture operations, many other organizations face working capital shortages because of the disaster and could find respite in these funds. Interest rates for these loans run as low as 2.813% for homeowners and renters, a smidgen higher at 3.625% for nonprofits, and cap at 4% for small businesses. Terms can extend up to 30 years, and crucially, the clock on interest and repayments only starts ticking 12 months after the loan has been paid out.
Starting from today, representatives will be available at the Disaster Loan Outreach Centers (DLOCs) in the counties of Orange and Alamance to help individuals navigate the application process for SBA's disaster loan program, as well as answer any pertinent questions. While walk-ins are welcome, appointments can be made in advance through the SBA's dedicated appointment portal at appointment.sba.gov.
