An important deadline for businesses effected by severe thunderstorms and flooding is quickly approaching. The U.S. Small Business Administration is encouraging businesses with physical damages caused by severe thunderstorms and flooding from March 15-23rd should apply for the SBA disaster loan assistance now before the July 8th deadline.
According to a press release from SBA, businesses and non-profit organizations can apply up to $2 million to repair or replace disaster damaged real estate, business assets, and inventory. Loans for working capital, known as Economic Injury Disaster Loans are also available even if the business didn’t suffer any physical damages. Homeowners can apply up to $200,000 to repair or replace damaged real estate; homeowners and renters can apply up to $40,000 to repair or replace personal property with the loans.
Interest rates on the loans are as low as 4% for businesses, 2.75% for private non-profit organizations, and 2.063% for homeowners and renters, with terms up to 30 years. The SBA determines loan amounts and terms based on circumstances.
Applicants can apply for a 20% increase up to the determined amount of physical damage for mitigating future damages to the property. Eligible mitigation improvements may include a safe room, shelter, or raising the property’s foundation from the ground to help protect property and occupants from future issues from similar disasters.
The filing deadline to submit applications for physical property damage is July 8. Economic injury loan deadlines are February 7th, 2020. Applicants may apply online at the SBA’s secure website DisasterLoan.sba.gov.