Getting Help from the SBA After an Emergency

When an emergency or disaster strikes, the last thing you want to worry about is how to keep your business afloat. That’s where the U.S. Small Business Administration (SBA) can help. The SBA offers low-interest disaster loans and other assistance to businesses, private nonprofits, homeowners, and renters to repair or replace damaged property after a declared disaster.

Who Qualifies for SBA Disaster Loans?

To be eligible for an SBA disaster loan, you must be located in a declared disaster area and have suffered damage or loss due to the disaster. Both homeowners and renters are eligible. Businesses of all sizes, private nonprofits, churches, synagogues, mosques, and other faith-based organizations are also eligible.

The SBA looks at your credit history, ability to repay, and whether you can get credit elsewhere when deciding whether to approve a loan. But even if you have bad credit or limited resources, you may still qualify for an SBA disaster loan with a cosigner or other options.

What Types of SBA Disaster Loans are Available?

The SBA offers low-interest disaster loans up to $2 million for businesses to repair or replace damaged property – real estate, inventory, supplies, machinery, equipment, etc. These loans can help businesses get back on their feet after a disaster. Terms are up to 30 years with interest rates around 4 percent.

As a business owner, you can also apply for an Economic Injury Disaster Loan (EIDL) if the disaster caused temporary loss of revenue. EIDL loans provide working capital funds to help keep the business operating until things return to normal.

For homeowners and renters, the SBA offers loans up to $200,000 to repair or replace your primary residence or personal property damaged in the disaster. Renters can get loans to replace personal property. The interest rate is around 2 percent with terms up to 30 years.

Farmers and ranchers can apply for low-interest SBA loans to cover production losses or property damage. The SBA also offers loans specifically for nonprofits.

What is the SBA Loan Application Process?

Applying for an SBA disaster loan involves several steps:

• Register with FEMA – This kicks off the process and gets your contact info to the SBA.
• SBA contacts you – A representative reaches out to explain the program and go over loan options.
• Fill out loan application – You’ll need to provide financial statements, tax returns, personal financial statements, and other documents.
• SBA assesses damage – A representative inspects your property to verify and evaluate the damage.
• SBA decides on loan approval and amount – They determine your eligibility and loan amount based on the assessment.
• Loan closing – You’ll sign a promissory note and loan agreement if approved. Funds are disbursed shortly after.

The approval process can take 2-3 weeks from completed application to funding. Submitting everything quickly helps speed things up.

What is SBA Debt Relief?

On top of disaster loans, the SBA also offers debt relief by making loan payments for existing SBA borrowers in declared disaster areas. This provides temporary payment relief so you can focus on recovery efforts.

The SBA will pay principal, interest, and fees on qualifying 7(a), 504, and microloans for up to 12 months. You need to submit a request to the SBA disaster office to have your loan payments made for you. This relief is available even if your business did not suffer physical damage from the disaster.

Getting Help from the SBA

Recovering from a disaster is tough. But SBA low-interest loans, debt relief, and other services can provide vital support when you need it most. If your home, business, or community is impacted by a declared disaster – don’t hesitate to reach out to the SBA for assistance. Their job is to help get you back on your feet.

With some perseverance and help from the SBA, you can rebuild and recover, even after unimaginable loss. It won’t happen overnight, but you’ll come out stronger in the end. Don’t be afraid to ask for help along the way. And know there are resources available, like SBA disaster loans, to help you get back to normal. We’re all in this together.