The U.S. Small Business Administration (SBA) has announced that low-interest federal disaster loans are now available to Alabama businesses and residents affected by the severe storms and tornadoes that occurred March 24 – 27, 2023.
SBA acted under the Disaster Assistance for Rural Communities Act to declare a disaster in response to a request received from Gov. Kay Ivey’s authorized representative, Jeff Smitherman, director of the Alabama Emergency Management Agency. The disaster declaration makes SBA assistance available in Macon, Marion, Morgan, and Tallapoosa counties in Alabama.
“SBA’s mission-driven team stands ready to help Alabama’s small businesses and residents impacted by severe storms and tornadoes,” said SBA Administrator Isabella Casillas Guzman. “We’re committed to providing federal disaster loans swiftly and efficiently, with a customer-centric approach to help businesses and communities recover and rebuild.”
On Aug. 14, SBA set up a Virtual Disaster Loan Outreach Center to help businesses, homeowners, and renters. Customer Service Representatives will be available to answer questions about SBA’s disaster loan program, explain the application process and help each person complete their electronic loan application.
Businesses of all sizes 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.
For small businesses, small agricultural cooperatives, small businesses engaged in aquaculture and most private nonprofit organizations of any size, SBA offers Economic Injury Disaster Loans to help meet working capital needs caused by the disaster. Economic injury assistance is available regardless of whether the business suffered any property damage.
Disaster loans up to $500,000 are available to homeowners to repair or replace damaged or destroyed real estate. Homeowners and renters are eligible for up to $100,000 to repair or replace damaged or destroyed personal property, including personal vehicles.
SBA can also lend additional funds to businesses and homeowners to help with the cost of improvements to protect, prevent or minimize future disaster damage.
Interest rates can be as low as 4% for businesses, 2.375% for private nonprofit organizations and 2.375% for homeowners and renters with terms up to 30 years. Loan amounts and terms are set by SBA and are based on each applicant’s financial condition.
SBA disaster loan borrowers have up to one year from the date of the note to begin making payments. In addition, interest does not begin to accrue until 12 months from the date of the initial loan disbursement and accrues only on the amount disbursed.
Applicants may apply online using the Electronic Loan Application (ELA) via SBA’s secure website at https://disasterloanassistance.sba.gov/ela/s/ and should apply under SBA declaration #18059.
The deadline to apply for property damage is Oct. 10, 2023. The deadline to apply for economic injury is May 13, 2024.
