SBA Offers Disaster Assistance to Residents of Alabama Affected by Hurricane Michael

Courtesy ADAI

Alabama businesses and residents affected by Hurricane Michael on October 10 – 13, 2018, can apply for low-interest disaster loans from the U.S. Small Business Administration (SBA), Administrator Linda McMahon announced.

Administrator McMahon made the loans available in response to a letter from Gov. Kay Ivey on Nov. 16, 2018, requesting a disaster declaration by the SBA. The declaration covers the Geneva and Houston counties, and the adjacent counties of Coffee, Covington, Dale and Henry, in Alabama; Holmes, Jackson and Walton in Florida; and Early and Seminole in Georgia.

“The SBA is strongly committed to providing the people of Alabama with the most effective and customer-focused response possible to assist businesses of all sizes, homeowners and renters with federal disaster loans,” said McMahon. “Getting businesses and communities up and running after a disaster is our highest priority at SBA.”

“I appreciate the Small Business Administration for approving my request for assistance for communities in the Wiregrass affected by Hurricane Michael,” Governor Kay Ivey said. “We know that there are many individuals and businesses that will benefit from the federal disaster loans that SBA offers as they try to recover from this disaster. I encourage those in eligible counties to take advantage of this considerate assistance.”

SBA’s Customer Service Representatives will be available at the Disaster Loan Outreach Centers to answer questions about the disaster loan program and help individuals complete their applications.

The Centers are located in the following community and are open as indicated:

“Businesses and private nonprofit organizations may borrow up to $2 million to repair or replace disaster damaged or destroyed real estate, machinery and equipment, inventory, and other business assets,” said SBA’s Alabama District Director Tom Todt.

For small businesses, small agricultural cooperatives, small businesses engaged in aquaculture and most private nonprofit organizations, the SBA offers Economic Injury Disaster Loans to help meet working capital needs caused by the disaster. Economic Injury Disaster Loan assistance is available regardless of whether the business suffered any physical property damage.

“Loans up to $200,000 are available to homeowners to repair or replace damaged or destroyed real estate. Homeowners and renters are eligible for loans up to $40,000 to repair or replace damaged or destroyed personal property,” said Kem Fleming, center director of SBA’s Field Operations Center East in Atlanta.

Applicants may be eligible for a loan amount increase up to 20 percent of their physical damages, as verified by the SBA for mitigation purposes. Eligible mitigation improvements may include a safe room or storm shelter to help protect property and occupants from future damage caused by a similar disaster.

Interest rates are as low as 3.675 percent for businesses, 2.5 percent for nonprofit organizations, and 2 percent for homeowners and renters with terms up to 30 years. Loan amount and terms are set by the SBA and are based on each applicant’s financial condition.

“We are so appreciative of the SBA approving the Governor’s request to assist communities ravaged by Hurricane Michael. SBA assistance will provide an option for individuals to repair damage to their homes and businesses caused by the storm,” Alabama EMA Director Brian Hastings said. “Those who received damaged from Hurricane Michael or have questions about SBA assistance in the declared counties should contact the SBA or stop by the Disaster Loan Outreach Center to inquire about assistance.”

Applicants may apply online using the Electronic Loan Application (ELA) via SBA’s secure website at DisasterLoan.sba.gov.

Businesses and individuals may also obtain information and loan applications by calling the SBA’s Customer Service Center at 1-800-659-2955 (1-800-877-8339 for the deaf and hard-of-hearing), or by emailing disastercustomerservice@sba.gov. Loan applications can also be downloaded at www.sba.gov. Completed applications should be returned to the centers or mailed to: U.S. Small Business Administration, Processing and Disbursement Center, 14925 Kingsport Road, Fort Worth, TX 76155.

The filing deadline to return applications for physical property damage is Jan. 22, 2019. The deadline to return economic injury applications is Aug. 20, 2019.

Source: U.S. Small Business Administration