SBA Helps in Vermont for Severe Storm and Flooding Damages

The U.S. Small Business Administration (SBA) is offering low-interest disaster loans to support businesses and residents affected by severe storms and flooding in Vermont. The disaster declaration, announced following the damages from the events that began on July 7, allows for swift and efficient federal disaster loans to aid in the recovery and rebuilding process.

SBA Administrator, Isabella Casillas Guzman, emphasized the agency’s commitment to assisting Vermont small businesses and residents impacted by the disaster. Under President Biden’s disaster declaration, the following counties are eligible for both Physical and Economic Injury Disaster Loans: Chittenden, Lamoille, Rutland, Washington, Windham, and Windsor in Vermont. Additionally, small businesses and most private nonprofit organizations in several adjacent counties can apply for SBA Economic Injury Disaster Loans.

Survivors of the disaster are urged not to wait for insurance settlements before applying for a disaster loan. SBA can provide low-interest loans for the total loss, up to its loan limits, with the understanding that insurance proceeds will be used to reduce or repay the loan.

To facilitate the application process, SBA Business Recovery Centers (BRCs) have been set up in Berlin and Ludlow, Vermont. Trained Customer Service Representatives are available at these centers to assist with disaster loan applications, accept necessary documents, and provide application status updates.

Businesses and private nonprofit organizations can borrow up to $2 million for repairing or replacing disaster-damaged or destroyed real estate, machinery, equipment, inventory, and other assets. For small businesses, agricultural cooperatives, and nonprofits, the SBA offers Economic Injury Disaster Loans to address working capital needs caused by the disaster, even if there was no physical property damage.

Homeowners can apply for disaster loans of up to $200,000 to repair or replace damaged real estate, while renters and homeowners may be eligible for up to $40,000 to repair or replace personal property.

The interest rates for these loans are as follows: 4 percent for businesses, 2.375 percent for nonprofits, and 2.5 percent for homeowners and renters. Loan amounts and terms are determined by the SBA based on each applicant’s financial condition.

Furthermore, applicants may qualify for a loan amount increase of up to 20 percent of their physical damages for mitigation purposes. Eligible mitigation improvements include measures like safe rooms, storm shelters, elevation, retaining walls, and landscaping to protect property and occupants from future disasters.

To apply for disaster assistance, applicants can use the Electronic Loan Application on the SBA’s secure website or register online at www.disasterassistance.gov. For those unable to access online or mobile services, assistance can be sought by calling the FEMA toll-free helpline.

Interested individuals can obtain disaster loan information and application forms by contacting the SBA’s Customer Service Center or downloading them from the SBA’s website. Completed applications should be mailed to the designated Processing and Disbursement Center.

The deadline for returning applications for physical property damage is Sept. 12, 2023, while the deadline for economic injury applications is April 15, 2024.

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