SBA tops $10 million in federal disaster assistance loans in California
Resources are earmarked for victims of severe winter storms, straight-line winds, flooding, landslides, and mudslides.
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The U.S. Small Business Administration (SBA), through the director of the Disaster Field Operations Center-West, Tanya N. Garfield, recently announced the approval of $2,780,900 for businesses and $7,243,000 for residents, which will serve to support rebuilding and disaster recovery efforts.
SBA’s disaster assistance employees are committed to helping businesses and residents rebuild as quickly as possible.
The official also called for businesses and residents of Kern, Madera, Mariposa, Mendocino, Mono, Monterey, San Benito, San Bernardino, Santa Cruz, Tulare, and Tuolumne counties, who suffered damages, to register before the June 2 deadline with the Federal Emergency Management Agency at www.disasterassistance.gov.
SBA recalls that it continues to provide personalized assistance to disaster loan applicants at all federal State Disaster Recovery Centers, SBA Commercial Recovery Centers, and SBA Disaster Loan Outreach Centers in all affected areas to explain the SBA disaster loan program and help business owners and residents close on their approved disaster loans.
These are some of the types of loans to which you can access:
- Businesses of all sizes and private nonprofit organizations can borrow up to $2 million to repair or replace damaged or destroyed real estate, machinery and equipment, inventory, and other business assets.
- SBA also offers additional funds to help businesses and residents with the cost of making improvements that protect, prevent, or minimize the same type of disaster damage that will occur in the future.
- Economic Injury Disaster Loans are available to help meet working capital needs caused by the disaster.
It is important to note that economic damage assistance is available regardless of whether the business suffered any property damage or not. The deadline to request economic damages is January 3, 2024.
“Don’t miss out on any assistance you may be entitled to by not registering for help. You don’t need to wait for your insurance to settle or obtain a contractor’s estimate,” added Garfield.
#HurricaneSeason starts June 1!— SBA (@SBAgov) May 6, 2023
If you live in hurricane-prone areas, you can act TODAY to prepare your business. Identify your risk and develop a plan for your business with help from @Readygov: https://t.co/DW5cSIGpAX#HurricaneStrong #HurricanePrep pic.twitter.com/amJrsPIfEP
Disaster loans of up to $200,000 are available to homeowners to repair or replace damaged or destroyed real property.
For their part, homeowners and renters are eligible to receive up to $40,000 to repair or replace damaged or destroyed personal property, including personal vehicles.
In addition, interest rates can be as low as 4% for businesses, 2.375% for private non-profit organizations, and 2.375% for homeowners and renters with terms up to 30 years. Loan amounts and terms are set by the SBA and are based on each applicant's financial condition.
Recently, the SBA administrator, Isabella Casillas Guzmán, announced a policy change that grants 12 months with no payments and 0% interest.
This refers to all emergency loans approved in response to disasters declared on or after September 21, 2022, through September 30, 2023, allowing for the SBA disaster loans currently available for Hurricane Fiona and Hurricane Ian.
This policy change will benefit disaster survivors and help them lower the overall cost of recovery by reducing the amount of accrued interest they must pay.