SBA’s Physical Disaster Loans Present Opportunity to Finance Mitigation Strategies

In response to the severe storms and floods that occurred between July 7 and July 17, 2023, the U.S. Small Business Administration has extended a valuable offer to Vermont residents and businesses who were granted disaster loans. Those who received approval now have a two-year window from the date of their loan acceptance to seek an augmentation of their loan amount. This augmentation is intended to preemptively address or reduce damages resulting from comparable future disasters. The SBA’s provision of funds for mitigation offers a cost-effective means for survivors to reconstruct with greater resilience, affording them the capacity to implement enhancements that safeguard both life and property.

SBA Associate Administrator Francisco Sanchez, Jr., highlighted the significance of the disaster loan program’s capacity to incorporate measures aimed at averting potential future harm. He urged individuals to consult with their contractors and specialists in emergency management mitigation to brainstorm ideas and to pursue an increase in their SBA disaster loan funding.

Both homeowners and businesses stand eligible for a loan augmentation of up to 20 percent of their documented physical damages, as verified by the SBA. This augmentation is designed to cover the expenses incurred for implementing improvements. Such measures encompass various strategies, such as reshaping or terracing landscapes to enhance drainage, installing French drains, sump pumps, diverters altering water flow from rooftops, and integrating backflow valves, among other options. Additionally, the mitigation funds can be directed towards the creation of secure rooms or storm shelters in accordance with Federal Emergency Management Agency guidelines. To explore the full scope of mitigation possibilities, please visit www.sba.gov/mitigation.

For further information, please contact the SBA’s Customer Service Center at 800-659-2955. If you have hearing impairments, deafness, or speech disabilities, you can access telecommunications relay services by dialing 7-1-1. Alternatively, you can reach out via email at DisasterCustomerService@sba.gov to inquire about increasing your SBA disaster loan for mitigation purposes.

The deadline to submit applications for property damage incurred is September 12, 2023. For economic injury applications, the deadline is April 15, 2024.

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