Federal disaster loans now available via SBA

“With President Biden’s declaration, SBA is working closely with FEMA and our state and local officials on the ground to deliver expedient disaster recovery loans and support that will aid Californians impacted by these severe and devastating winter storms, flooding and mudslides,” said Guzman. “My heartfelt condolences go out to the families who have lost loved ones, and I urge affected residents to stay safe and heed the guidance of local emergency officials. As the state faces continued rainfall and heightened risks of flooding and mudslides, the SBA is committed to providing the full breadth of our resources to help small businesses and communities recover and rebuild stronger than before.”

Information released by the SBA stated that businesses of all sizes and private nonprofit organizations may borrow up to $2 million to repair or replace damaged or destroyed real estate, machinery, equipment, inventory, and other business assets. SBA said it can also lend additional funds to businesses and homeowners to help with the cost of improvements to protect, prevent, or minimize the same type of disaster damage from occurring in the future.

Economic injury disaster loans will also be available through the SBA for small businesses, small agricultural cooperatives, small businesses engaged in aquaculture, and most private nonprofit organizations. Economic injury assistance is available to businesses regardless of any property damage and is meant to help meet the working capital needs caused by the disaster and to assist through the disaster recovery period.  

According to SBA’s public information officer George N. Kostyrko, Sutter County is eligible for economic injury assistance as it is considered a contiguous county. Other counties considered contiguous include Alameda, Amador, Calaveras, Contra Costa, El Dorado, Fresno, Kern, Kings, Madera, Mariposa, Placer, San Benito, San Mateo, Santa Clara, Solano, Stanislaus, Tuolumne, Ventura, and Yolo. Businesses in these contiguous counties may apply for low interest loans due to economic impacts of the severe storms and flooding.

The deadline to apply for an Economic Injury Disaster Loan is Oct. 16. To be considered for all forms of disaster assistance, SBA requires that survivors first contact the Federal Emergency Management Agency at disasterassistance.gov. Once federal and state disaster recovery centers open throughout the affected areas, SBA will provide one-on-one assistance to disaster loan applicants. Additional information and details on the location of disaster recovery centers is available by calling SBA’s customer service center at 800-659-2955.

The SBA said that disaster loans up to $200,000 would be available to homeowners to repair or replace damaged or destroyed real estate with homeowners and renters eligible for up to $40,000 to repair or replace damaged or destroyed personal property. Interest rates may be as low as 3.305% for businesses, 2.375% for private nonprofit organizations, and 2.313% for homeowners and renters with terms up to 30 years. Loan amounts and terms are set by the SBA and are based on each applicant’s financial condition.

Applicants may apply online, receive additional disaster assistance information, or download applications at disasterloanassistance.sba.gov. For more information on SBA’s disaster assistance programs, applicants may call the SBA customer service center or email disastercustomerservice@sba.gov. Those who are deaf, hard of hearing, or have a speech disability, may dial 7-1-1 to access telecommunications relay services. Completed applications should be mailed to the U.S. Small Business Administration, Processing and Disbursement Center, 14925 Kingsport Road, Fort Worth, TX 76155.