Low-interest loans are available to homeowners and businesses affected by winter storms, the Small Business Administration (SBA) announced Jan. 15.
Businesses and private nonprofit organizations can borrow up to $2 million to repair or replace damaged real estate, machinery and equipment, inventory, and other business assets. Additional funds are available to businesses and homeowners to protect against the same type of damage in the future.
The storms have also caused economic hardship for businesses, even if they suffered no physical damage. As a result, the SBA offers Economic Injury Disaster Loans “to help meet working capital needs caused by the disaster…regardless of any property damage.” Small businesses, small farm cooperatives, small aquaculture businesses, and most private nonprofit organizations are eligible for Economic Injury Disaster Loans.
Homeowners can borrow up to $200,000 to repair or replace damaged or destroyed real property. Homeowners and renters can access up to $40,000 to repair or replace damaged or destroyed personal property.
The SBA said interest rates start at around 3.3% for businesses, 2.4% for private nonprofits and 2.3% for homeowners and renters, with terms up to 30 years. The SBA sets loan amounts and terms based on the applicant’s finances.
SBA Administrator Isabella Casillas Guzmán said in a statement that her agency is working with the Federal Emergency Management Agency (FEMA) and state and local officials to “provide recovery loans for timely disasters” to affected Californians.
“My condolences to the families who have lost loved ones, and I urge affected residents to stay safe and heed instructions from local emergency officials,” Guzmán said. “As the state faces continued rain and increased risks of flooding and mudslides, the SBA is committed to providing all of our resources to help small businesses and communities recover and rebuild stronger than before.”
All applicants for disaster assistance should first contact FEMA at www.disasterassistance.gov. Once disaster recovery centers open, the SBA will offer one-on-one assistance to loan applicants. For more information, call SBA customer service at 800-659-2955.