The U.S. Small Business Administration (SBA) offers disaster assistance to small businesses through low interest loans.
Due to the blizzard this past December, WNY businesses can apply for loans through the SBA. So far, only 100 WNY businesses have applied for these low-interest disaster loans, so The Coppola Firm wants to ensure our Buffalo Niagara community is aware of this opportunity, especially if your business was hard-hit by the December storm.
There are three steps in applying for the SBA’s disaster loan assistance:
- See if a disaster has been declared (it has!);
- Apply for the disaster loan; and
- Check your SBA account and email for updates.
The SBA offers different types of loans for physical and economic issues.
Business Physical Disaster Loans are for businesses that have experienced physical damage to their business.
- Any size business and most private nonprofit organizations can apply.
- These funds can be used to repair or replace real property, machinery, equipment, inventory, etc.
- It is important to note that you may not use the loan to upgrade or expand a business.
- Loans up to $2 million are awarded.
- The interest rate will not exceed 4% if you cannot obtain credit elsewhere and 8% if you can.
- Repayment terms can be up to 30 years.
Economic Injury Disaster Loans are for businesses that are unable to meets their obligations and to pay their ordinary and necessary operating expenses.
- Any small business, small agricultural cooperatives, and most nonprofit organizations can apply.
- Assistance is available only when the SBA determines the business is unable to obtain credit elsewhere.
- Loans can be up to $2 million.
- The loan amount is based on the actual economic injury and company’s financial needs.
- The interest rate will not exceed 4%.
- The term of this loan will not exceed 30 years.
A business can be eligible for both types of SBA disaster loans. If that’s the case, the maximum combined loan amount is $2 million.
The SBA typically responds within 30 days or so.
Businesses can apply until April 28, 2023 for physical disaster loans and November 27, 2023 for economic injury loans. So if you qualify, don’t miss out. To be sure, as a result of the December 2022 blizzard, your small business may be eligible for loans through the SBA.
At The Coppola Firm, we help our clients navigate business law. Reach out to us at email@example.com or 716.839.9700 if you have questions or need business guidance.