SBA Allocating Substantial Funds For Disaster Loans
Written by Jenna Weiner
The SBA has earmarked over $1 million to help small businesses rebuild after storms.
A June 9 press release from the U.S. Small Business Administration provided some good news for small businesses after devastating spring storms in Western Tennessee. The SBA announced it has allocated more than $1 million for disaster relief loans to help small businesses in the affected region rebuild.
Two types of loans are available. Physical disaster loans are available to businesses in the Tennessee counties where the storm hit, causing damage to real estate, equipment, inventory and fixtures. Economic Injury Loans, which help businesses meet disaster-related shortfalls of working capital, are available in counties in Tennessee, Arkansas, Missouri, Kentucky and Mississippi.
Physical disaster loans can run to $2 million. Increases of 20 percent can be approved for the purposes of making improvements to mitigate the risk of future storm damage.
According to the SBA website, disaster loans can run to 30 years, with interest rates of 3 percent for non-profits and 4 percent for businesses.
The last few months have seen severe weather affect regions around the country. Since May 17, the SBA has offered disaster loans as a result of tornadoes, flooding, and storms to areas in Louisiana, Pennsylvania, Kentucky, Massachusetts, Kansas, Ohio, Oklahoma and Illinois.
Small businesses on the Atlantic seaboard might be next in line for these loans. The National Oceanic and Atmospheric Administration has predicted a bad hurricane season, including three to six major storms.
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