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SBA Offers Disaster Assistance

19 February 2010

The Small Business Administration is offering low-interest federal disaster loans for California residents and business owners affected by the recent severe winter storms that generated heavy rain, snow and high winds causing flooding, debris flows and mudslides. Disaster loans up to $200,000 are available to homeowners to repair or replace damaged or destroyed real estate. Homeowners and renters are eligible for up to $40,000 to repair or replace damaged or destroyed personal property.

“Low-interest federal disaster loans are available to homeowners, renters, businesses of all sizes and private, non-profit organizations whose property was damaged or destroyed by the disaster,” said Alberto G. Alvarado, the SBA’s Acting Regional Administrator.

Businesses of any size, private and non-profit organizations may borrow up to $2 million to repair or replace damaged or destroyed real estate, machinery and equipment, inventory, and other business assets. The SBA can also lend additional funds to homeowners and businesses to help with the cost of making improvements that protect, prevent or minimize the same type of disaster damage from occurring in the future.

For small businesses and most private, non-profit organizations, the SBA offers Economic Injury Disaster Loans (EIDLs) to help meet working capital needs caused by the disaster. EIDL assistance is available regardless of whether the business suffered any property damage.

Interest rates can be as low as 2.562 percent for homeowners and 4.00 percent for businesses with terms up to 30 years. Loan amounts and terms are set by the SBA and are based on each applicant’s financial condition.

Disaster loan information and application forms are also available from the SBA’s Customer Service Center by calling the SBA toll-free at: (800) 659 2955, emailing them at: disastercustomerservice@sba.gov, or visiting the SBA Diaster Assistance web site. Hearing impaired individuals may call: (800) 877 8339. Applicants may apply online using the Electronic Loan Application (ELA) via the secure website, SBA Diaster Loan Application.

The filing deadline to return applications for property damage is April 19, 2010. The deadline to return economic injury applications is November 16, 2010.