SBA Disaster Declaration
The U.S. Small Business Administration (“SBA”) is making low-interest, long-term federal disaster loans available to residents and business owners in San Francisco, San Mateo, Alameda, Santa Clara and Santa Cruz whose property was damaged or destroyed by the severe storms and flooding that occurred December 11‑12, 2014. Specifically:
- Disaster loans up to $200,000 are available to homeowners to repair or replace damaged or destroyed real estate. Homeowners and renters are eligible for up to $40,000 to repair or replace damaged or destroyed personal property.
- Businesses of any size and private nonprofit organizations may borrow up to $2 million to repair or replace damaged or destroyed real estate, machinery and equipment, inventory, and other business assets.
- SBA can also lend additional funds to homeowners and businesses to help with the cost of making improvements that protect, prevent or minimize the same type of disaster damage from occurring in the future.
- For small businesses, small agricultural cooperatives, small businesses engaged in aquaculture, and most private nonprofit organizations of any size, SBA also offers Economic Injury Disaster Loans (EIDLs) to help meet working capital needs caused by the disaster. EIDL assistance is available regardless of whether the business suffered any property damage.
Eligible property damage can include uninsured damage to buildings, other uninsured property such as vehicles, or the cost of removing downed trees, for example. Residents or businesses suffering losses which they believe to be recoverable through insurance may nonetheless wish to apply, as they may be eligible to cover costs for claims that their insurance companies ultimately deny, and can retract their applications once the insurance claims are paid.
Interest rates can be as low as 1.938 percent for homeowners and renters, 2.625 percent for private nonprofit organizations and 4 percent for businesses, with terms up to 30 years. Loan amounts and terms are set by SBA and are based on each applicant’s financial condition—see the attached notice declaration with interest rate information.
Application Filing Deadlines:
- Physical Damage: March 3, 2015
- Economic Injury: October 2, 2015
Applicants may apply online using the Electronic Loan Application (ELA) via SBA’s secure Web site. Disaster loan information and application forms are also available from SBA’s Customer Service Center by calling (800) 659-2955 or emailing email@example.com. Individuals who are deaf or hard-of-hearing may call (800) 877-8339. For more information about SBA’s disaster assistance programs, visit here; a list of contacts is also attached.