Last month the U.S. Small Business Administration (SBA) announced that it has exhausted funds for its disaster loan program but while awaiting Congress to appropriate additional funds, the agency is encouraging individuals and small businesses to continue to apply for loans given assurances from congressional leaders that additional funding will be provided now that Congress is back in session.
On Nov. 13, Congressman Vern Buchanan, co-chair of the Florida delegation, led a bipartisan letter to Congressional leadership calling for significant new funding to help replenish the SBA’s disaster loan program. “The SBA’s disaster loan program is a lifeline for thousands of small businesses working to recover from recent natural disasters, and without additional funding, many will face an uncertain future,” said Congressman Buchanan. “Congress must act swiftly to ensure these critical resources are available so that small businesses can continue to grow, create jobs and drive economic recovery.”
The disaster loan program provides direct, low-interest, long-term loans to businesses and people affected by disasters, as well as disaster assistance for homeowners, renters, nonprofits and businesses of all-sizes. Types of disaster loans available include Business Physical Disaster Loans to businesses or nonprofits to repair or replace disaster-damaged property, Economic Injury Disaster Loans to provide working capital to help small businesses, small agricultural cooperatives and nonprofit organizations meet their ordinary and necessary financial obligations that can’t be met as a direct result of Hurricane Milton and Home Disaster Loans to homeowners or renters to repair or replace disaster-damaged real estate and personal property, including automobiles.
“We continue to review applications and encourage people to apply for an SBA loan so they can weigh all their options,” said SBA Public Affairs Specialist Julie Garrett. “Once we’re funded we’ll be able to quickly disburse those funds.”
Need a retaining wall or sump pump to protect property against future damage? Additional funds may be available to cover improvement costs and even cover Florida’s high insurance deductibles.
SBA can also refinance all or part of prior mortgages when an applicant does not have credit available elsewhere, has suffered substantial uncompensated disaster damage and intends to repair the damage. SBA disaster loans can also be used to relocate.
These loans offer low-interest, fixed-rates with terms up to 30 years, no payment and no interest for 12 months, up to $500,000 to cover damage to primary residences and up to $100,000 to replace personal property (including vehicles). Loan limits for businesses and nonprofits is up to $2 million.
The filing deadline to return applications for physical property damage related to Hurricane Helene is Nov. 24. For Hurricane Milton, the deadline is Dec. 10.
For more information about SBA disaster loans or to apply, visit www.sba.gov/disaster or call 800-659-2955 to locate a FEMA Disaster Recovery Center for assistance with your loan application or check the status of an application.