Low-interest disaster loans from the U.S. Small Business Administration (SBA) are now available to businesses and residents in Florida following a Presidential disaster declaration for severe storms, straight-line winds, and tornadoes that occurred on May 10.
“SBA’s mission-driven team stands ready to help Florida small businesses and residents impacted by this disaster in every way possible under President Biden’s disaster declaration for certain affected areas,” said SBA Administrator Isabel Casillas Guzman. “We’re committed to providing federal disaster loans swiftly and efficiently, with a customer-centric approach to help businesses and communities recover and rebuild.”
The disaster declaration covers Leon County, which is eligible for both Physical and Economic Injury Disaster Loans from the SBA. Small businesses and most private nonprofit organizations in adjacent counties, including Franklin, Gadsden, Jefferson, Liberty, and Wakulla in Florida; as well as Grady and Thomas in Georgia, are eligible to apply only for SBA Economic Injury Disaster Loans (EIDLs).
Disaster survivors are advised not to wait to settle with their insurance company before applying for a disaster loan. If survivors do not know how much of their loss will be covered by insurance or other sources, the SBA can make a low-interest disaster loan for the total loss up to its loan limits, provided the borrower agrees to use insurance proceeds to reduce or repay the loan.
Businesses and private nonprofit organizations of any size may borrow up to $2 million to repair or replace disaster-damaged or destroyed real estate, machinery and equipment, inventory, and other business assets.
For small businesses, small agricultural cooperatives, small businesses engaged in aquaculture, and most private nonprofit organizations, the SBA offers Economic Injury Disaster Loans (EIDLs) to help meet working capital needs caused by the disaster. This assistance is available regardless of whether the business suffered any physical property damage.
Disaster loans up to $500,000 are available to homeowners to repair or replace disaster-damaged or destroyed real estate. Homeowners and renters are eligible for up to $100,000 to repair or replace personal property damaged or destroyed by the disaster.
Applicants may be eligible for a loan amount increase of up to 20 percent of their physical damages as verified by the SBA for mitigation purposes. Eligible mitigation improvements may include a safe room or storm shelter, sump pump, French drain or retaining wall to help protect property and occupants from future damage.
Interest rates are as low as 4% for businesses, 3.25% for nonprofit organizations, and 2.688% for homeowners and renters. Terms extend up to 30 years. Interest does not begin accruing until 12 months from the date of initial disbursement. Loan amounts and terms are set by the SBA based on each applicant’s financial condition.
Building back smarter and stronger can be an effective recovery tool for future disasters. “The opportunity to include measures to help prevent future damage from occurring is a significant benefit of SBA’s disaster loan program," said Francisco Sánchez Jr., associate administrator for the Office of Disaster Recovery and Resilience at the Small Business Administration. “I encourage everyone to consult their contractors and emergency management mitigation specialists for ideas.”
With changes made by FEMA’s Sequence of Delivery policy, survivors are encouraged simultaneously apply for FEMA grants alongside SBA low-interest disaster loan assistance. FEMA grants aim at covering necessary expenses not paid by insurance or other sources while SBA loans focus on long-term recovery efforts.
Applicants can apply online at sba.gov/disaster or call SBA’s Customer Service Center at (800) 659-2955 for more information on SBA disaster assistance. For those who are deaf or hard of hearing dial 7-1-1 access telecommunications relay services.
The filing deadline applications physical property damage Aug. 16 2024 The deadline return economic injury applications Mar 17 2025
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