Small Business Owners Offer Loans to Help with Hurricane Recovery

Low-interest loans are available for homeowners and businesses affected by winter storms, the Small Business Administration (SBA) announced January 15.

Businesses and individuals can borrow up to $2 million to repair or replace damaged property, plant and equipment, inventory and other business assets. Additional funds are also available for businesses and homeowners to protect against the same loss in the future.

Hurricanes also cause economic hardship for businesses, even if there is no physical damage. As a result, the SBA offers economic disaster loans “to help meet capital needs resulting from the disaster … regardless of property damage.” Small businesses, small agricultural businesses, small businesses working in agriculture, and many private non-profit organizations are eligible for loans. economic damage.

Homeowners can borrow up to $200,000 to repair or replace damaged or destroyed property. Homeowners and renters can get up to $40,000 to repair or replace damaged or destroyed property.

The SBA says interest rates start at 3.3% for businesses, 2.4% for private businesses and 2.3% for homeowners and renters, with terms up to 30 years. The loan amount and terms are determined by the SBA based on the applicant’s income.

SBA Administrator Isabella Casillas Guzman said in a statement that her agency is working with the Federal Emergency Management Agency (FEMA) and state and local governments to “provide emergency loans” to affected Californians. .

“My heartfelt condolences go out to the families of those who lost their loved ones, and I urge the affected people to stay safe and heed the guidance of emergency officials,” Guzman said. “As the state faces persistent rains and high risk of flooding and mudslides, SBA is committed to providing the breadth of our resources to help small businesses and communities recover and rebuild stronger.” the first time.”

All applicants for disaster assistance must first contact FEMA at Once the SBA emergency centers are open they will offer individual assistance to loan applicants. For more information, call SBA customer service at 800-659-2955.

Leave a Comment