Deadline looming for loans from SBA
Businesses, homeowners and renters have until Nov. 4 to apply
ATLANTA » When flash floods moved through the area on July 11 and 12, they left significant property damage in their wake. In early September, the Small Business Administration (SBA) announced the availability of low-interest disaster loans — available through the SBA Disaster Loan Programs.
The time to apply for the loans is limited, however, and the SBA is reminding those affected to submit their application for a disaster loan for physical damage before the Nov. 4, 2019, deadline.
The loans are available for businesses of all sizes, private nonprofit organizations, homeowners and renters in Berks, Chester, Lancaster, Lebanon, Lehigh, Montgomery and Schuylkill counties.
“Families and small business owners should strongly consider applying for these loans,” Steve Bulger, the SBA’s Mid-Atlantic acting regional administrator, said in a press release. Bulger oversees the federal agency’s operations in Pennsylvania.
Businesses and nonprofits can apply up to $2 million to repair or replace disaster-damaged real estate, machinery, equipment, inventory and other business assets, Bulger said.
“If applicants later determine these loans are not needed, they can always turn them down at no cost,” he added.
The disaster loans were made available following the SBA’s disaster declaration, in response to an Aug. 28 letter from Pennsylvania Gov. Tom Wolf.
Working capital loans, known as Economic Injury Disaster
“Families and small business owners should strongly consider applying for these loans.” — Steve Bulger, SBA Mid-Atlantic acting regional administrator
Loans, are available even if the business did not suffer any physical damage. Homeowners can apply for up to $200,000 to repair or replace damaged real estate. Homeowners and renters can apply up to $40,000 toward personal property.
Interest rates are as low as 4% for businesses, 2.75% for private nonprofit organizations, and 1.938% for homeowners and renters, with terms up to 30 years. The SBA determines loan amounts and terms based on each applicant’s circumstances.
Applicants may also be eligible for a loan amount increase up to 20%, for mitigation purposes — which may include a safe room, storm shelter, sump pump, French drain or retaining wall to help protect property and occupants from future damage.
“Low-interest loans are a significant part of helping people and businesses recover from flooding,” Gov. Wolf said in September, in response to the announcement that the disaster loans would be made available.
Applicants may apply online using the Electronic Loan Application (ELA) via the SBA’s secure website at DisasterLoan.sba.gov.
Additional details on the loan application process can be obtained by calling the SBA Customer Service Center at 800-6592955 (800-877-8339 for the deaf and hard-of-hearing) or by sending an email to disastercustomerservice@ sba.gov. Loan applications can also be downloaded at www.sba.gov. Completed applications should be mailed to: U.S. Small Business Administration, Processing and Disbursement Center, 14925 Kingsport Road, Fort Worth, TX 76155.
The filing deadline to return applications for physical property damage is Nov. 4, 2019. The deadline to return economic injury applications is June 3, 2020.
Interest rates are as low as 4% for businesses, 2.75% for private nonprofit organizations, and 1.938% for homeowners and renters, with terms up to 30 years. The SBA determines loan amounts and terms based on each applicant’s circumstances.