The US Small Business Administration (the “SBA”) is offering financial assistance in the form of loans for those located in the disaster areas caused by Hurricane Ida.
The available loans are:
Business Physical Disaster Loans – Loans to businesses to repair or replace disaster-damaged property owned by the business, including real estate, inventories, supplies, machinery and equipment. Businesses of any size are eligible. Private, non-profit organizations such as charities, churches, private universities, etc., are also eligible.
Economic Injury Disaster Loans (EIDL) – Working capital loans to help small businesses, small agricultural cooperatives, small businesses engaged in aquaculture, and most private, non-profit organizations of all sizes meet their ordinary and necessary financial obligations that cannot be met as a direct result of the disaster. These loans are intended to assist through the disaster recovery period.
Home Disaster Loans – Loans to homeowners or renters to repair or replace disaster-damaged real estate and personal property, including automobiles.
Applicants must have a credit history acceptable to the SBA and must show an ability to repay the loan. The SBA is requiring collateral for physical loss and economic injury loans over $25,000.
The interest rates for the loans range from 5.710% to 1.563% depending on whether you have credit available elsewhere. The term of the loans will be between 7 and 30 years.
There are restrictions on loan eligibility, including:
Uninsured Losses – Only uninsured or otherwise uncompensated disaster losses are eligible. Any insurance proceeds which are required to be applied against outstanding mortgages are not available to fund disaster repairs and do not reduce loan eligibility. However, any insurance proceeds voluntarily applied to any outstanding mortgages do reduce loan eligibility.
Ineligible Property – Secondary homes, personal pleasure boats, airplanes, recreational vehicles and similar property are not eligible, unless used for business purposes. Property such as antiques and collections are eligible only to the extent of their functional value. Amounts for landscaping, swimming pools, etc., are limited.
Noncompliance – Applicants who have not complied with the terms of previous SBA loans may not be eligible. This includes borrowers who did not maintain flood and/or hazard insurance on previous SBA loans.
If you have any questions, please reach out to Adam M. Stumpf (as@chehardy.com). You can find more information and apply here: https://www.sba.gov/funding-programs/disaster-assistance