Small Business Administration offering low-interest loans to businesses and homeowners affected by Ida damage
Delaware businesses and residents affected by the remnants of Hurricane Ida in early September of last year can apply for low-interest disaster loans from the U.S. Small Business Administration, the report said. administrator of the SBA, Isabella Casillas Guzman.
Guzman made the loans available in response to a Jan. 19 letter from Delaware Gov. John Carney requesting a disaster declaration by the SBA. Businesses and residents in the declared area can now apply for low-interest disaster loans from the SBA.
The declaration includes New Castle County and adjacent Kent counties in Delaware; Cecil and Kent in Maryland; Gloucester and Salem in New Jersey; and Chester and Delaware in Pennsylvania. Much of the damage in Delaware occurred in parts of Wilmington when Brandywine Creek flooded.
Due to Covid-19 health precautions, the SBA will not be establishing a field presence. However, the SBA will continue to provide customer service and conduct outreach virtually with webinars, phone support, and application support.
The SBA has opened a virtual Disaster Loan Awareness Center to help survivors apply online using the Electronic Loan Application through the SBA’s secure website at [email protected]. Virtual customer service representatives are available to help applicants complete the online application Monday through Saturday, 8 a.m. to 8 p.m. Close on Sunday. Telephone, (800) 659-2955
“Businesses and private non-profit organizations can borrow up to $2 million to repair or replace real estate, machinery and equipment, inventory and other business assets damaged or destroyed by a disaster,” John said. Fleming, Delaware district director of the SBA.
For small businesses, small agricultural cooperatives, small businesses engaged in aquaculture, and most private nonprofit organizations, the SBA offers Economic Disaster Loans (EIDL) to help meet working capital needs caused by the disaster. EIDL loan assistance is available whether or not the business has suffered property damage.
“Loans of up to $200,000 are available to homeowners to repair or replace damaged or destroyed property. Homeowners and tenants are eligible for loans of up to $40,000 to repair or replace damaged or destroyed personal property,” said Kem Fleming, director of SBA’s Field Operations Center East in Atlanta.
Applicants may be eligible for an increase in the loan amount up to 20% of their physical damage, as verified by the SBA for mitigation purposes. Eligible mitigation upgrades may include a safe room or storm shelter, sump pump, French drain, or retaining wall to help protect property and occupants from future damage from a similar disaster.
Interest rates are as low as 2.855% for businesses, 2% for nonprofits, and 1.563% for homeowners and tenants, with terms up to 30 years. Loan amounts and terms are set by the SBA and are based on each applicant’s financial situation.
The deadline for filing property damage return claims is March 25, 2022. The deadline for returning economic loss claims is October 24, 2022.