San Francisco, CA (PRWEB) November 09, 2012
The SBA has exceptional powers to provide relief in disasters, and most of its lending of this type goes to homeowners and renters. But there are funds available for businesses. Small businesses can take advantage of the exceptional conditions that the SBA makes available. Of the 1.9 million SBA disaster loans approved since 1953, more than 302,000 loans were for businesses amounting to a total of $17 billion (of a total $48 billion).
If the President makes a major disaster declaration for Individual Assistance, SBA’s disaster loan program is automatically activated. Small businesses, small cooperatives and most private non-profits can apply for working capital loans to cover economic injury losses.
For example, the SBA issued a disaster declaration in Douglas County, Wisconsin and nearby areas, after a drought emergency was declared there on July 31. By the middle of August, 38 disaster loans were approved in the amount of $1,587,800 for affected survivors, according to the SBA. Businesses in Douglas County were not obliged to wait for decisions about insurance coverage before applying for SBA disaster loans. The agency allows the suffering business to obtain the loan first, then to use eventual insurance payments to help repay the loan. The agency expects loan requests following the devastating affects of Hurricane Sandy.
For small businesses, small agricultural cooperatives, small businesses engaged in aquacultural, and most private non-profit organizations of all sizes, the SBA 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 physical property damage. Interest rates are as low as 3% for non-profit organizations and 4% for businesses with terms up to 30 years. The SBA sets the loan amounts and terms based on each applicant's financial condition.
The SBA has a total of $4.2 billion to lend for disasters. In July of this year, the SBA expanded its disaster loan program to companies and nonprofits in 1,430 counties across 32 states.
About Sunovis Financial
Our mission at Sunovis Financial is to help small businesses to obtain needed SBA financing, especially in difficult times like disaster recovery. Sunovis guidees small businesses through the steps and complexities of an SBA loan.