News & Events

On March 29, 2023, U.S. Small Business Administration’s Administrator Isabella Casillas Guzman announced that low-interest federal disaster loans are now available to businesses and residents in Kern, Mariposa, Monterey, San Benito, Santa Cruz, Tulare, and Tuolumne counties as a result of the severe winter storms, straight-line winds, flooding, landslides and mudslides that began on February 21, 2023, and continuing. The announcement was made after President Biden’s major disaster declaration.
According to Administrator Guzman, they are committed to providing federal disaster loans swiftly and efficiently, with a customer-centric approach to help businesses and communities recover and rebuild.

Types of Disaster Loans Available

Businesses of all sizes and private non-profit organizations can borrow up to $2 million to repair or replace damaged or destroyed real estate, machinery and equipment, inventory, and other business assets. SBA can also lend additional funds to businesses and homeowners to help with the cost of improvements to protect, prevent or minimize the same type of disaster damage from occurring in the future.

For small businesses, small agricultural cooperatives, small businesses engaged in aquaculture, and most private non-profit organizations of any size, SBA offers Economic Injury Disaster Loans to help meet working capital needs caused by the disaster. Economic injury assistance is available to businesses regardless of any property damage.

Disaster loans up to $200,000 are available to homeowners to repair or replace damaged or destroyed real estate. Homeowners and renters are eligible for up to $40,000 to repair or replace damaged or destroyed personal property, which includes their disaster damaged personal vehicles.

Interest Rates and Loan Terms

Interest rates can be as low as 4 percent for businesses, 2.375% for private non-profit organizations, homeowners, and renters with terms up to 30 years. Loan amounts and terms are set by SBA and are based on each applicant’s financial condition.

Policy Change for Disaster Loans

Recently, the U.S. SBA announced a policy change granting 12 months of no payments and 0% interest. This applies to all disaster loans approved in response to disasters declared on or after September 21, 2022, through September 30, 2023. This includes SBA disaster loans currently available for Hurricane Fiona and Hurricane Ian. This policy change will benefit disaster survivors and help them decrease the overall cost of recovery by reducing the amount of accrued interest they must repay. Details are available through the SBA Disaster Assistance Customer Service Centre at (800) 659-2955. Individuals with verbal or hearing impairments may dial 7-1-1 to access telecommunications relay services from 8:00 a.m. to 8:00 p.m. ET, Monday to Friday, or email: disastercustomerservice@sba.gov.

How to Apply for Disaster Assistance?

To be considered for all forms of disaster assistance, survivors must first contact the Federal Emergency Management Agency (FEMA) at www.disasterassistance.gov. As soon as Federal-State Disaster Recovery Centres open throughout the affected area, SBA will provide one-on-one assistance to disaster loan applicants. Additional information and details on the location of disaster recovery centres are available by calling the SBA Customer Service Centre.

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