SBA offers low-interest disaster loans to businesses

Homeowner, renter loans also available

• Enterprise report
• Oct 2, 2015

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The Small Business Administration is working with the Federal Emergency Management Agency to provide low-interest disaster loans to businesses, homeowners, renters and nonprofit organizations affected by the Butte Fire.

Businesses may borrow up to $2 million for property damage or economic injury, including loss of revenue incurred from forced closure. These loans are applicable to small businesses, agricultural cooperatives and most private nonprofit organizations.

Interest rates for loans are contingent on the applicant’s ability to borrow from non-government sources or to provide for their own recovery. Interest rates for businesses with no credit available elsewhere is 4 percent, while the interest rate for those who can borrow from other financial institutions is 6 percent.

Loan terms are set up to a maximum of 30 years, but applicants with credit available elsewhere are restricted to a seven-year term.

Loans are also available to homeowners and renters to replace damaged real estate and personal property. Homeowners may borrow up to $200,000 to repair or replace residences, and homeowners and renters both may borrow up to $40,000 to replace personal property. Interest rates for home loans are 1.87 percent for those with no other credit available, and 3.75 percent for those with credit available elsewhere.

Those seeking SBA loans are required to first register with the Federal Emergency Management Agency. Loan applications can be made online on the SBA’s website at https://disasterloan.sba.gov/ela. Applications may also be made in person with an SBA representative at the Calaveras County Government Center, Monday through Friday from 8 a.m. to 6 p.m., Saturdays from 9 a.m. to 4 p.m. and Sundays from noon to 4 p.m.

Applications for SBA loans are due on Monday, Nov. 23, for physical damage and Wednesday, June 22, for loans related to loss of revenue.