Deadline Nears for California SBA Disaster Loan Applications

California’s deadline for applying for federal disaster loans due to the severe winter storms is fast approaching. Francisco Sánchez Jr., associate administrator for the Office of Disaster Recovery and Resilience at the Small Business Administration (SBA), issued a reminder that the deadline is July 16. These loans cover property damage from storms, tornadoes, flooding, landslides, and mudslides in Butte, Los Angeles, and Santa Cruz between January 31 and February 9.

Sánchez noted that businesses of all sizes, along with private nonprofit organizations, homeowners, and renters, can apply for SBA federal disaster loans. These loans aim to repair or replace property damaged by the disasters. Additionally, the SBA can provide extra funds to improve properties to reduce future disaster damage.

The SBA Rural Disaster declaration extends assistance to both rural and non-rural regions in the affected counties. Businesses and private nonprofits may borrow up to $2 million to cover real estate, machinery, equipment, inventory, and other business assets that were damaged or destroyed.

Moreover, the SBA offers Economic Injury Disaster Loans (EIDLs) to small businesses, small agricultural cooperatives, aquaculture enterprises, and most private nonprofits. These loans help meet working capital needs resulting from the disaster, irrespective of any property damage. The application deadline for EIDLs is February 18, 2025.

Homeowners can apply for disaster loans of up to $500,000 to repair or replace damaged real estate. Both homeowners and renters can get up to $100,000 for personal property, including vehicles.

Interest rates for these loans can be as low as 4 percent for businesses, 3.25 percent for private nonprofits, and 2.688 percent for homeowners and renters. The SBA sets loan amounts and terms based on each applicant’s financial condition, with repayment terms extending up to 30 years.

Applicants have a 12-month grace period from the date of the first loan disbursement before interest begins to accrue and repayments are required.

To apply or get more information, visit SBA.gov/disaster. Assistance is also available through the SBA’s Customer Service Center at (800) 659-2955 or via email at disastercustomerservice@sba.gov. For those who are deaf, hard of hearing, or have a speech disability, dial 7-1-1 to access telecommunications relay services.

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This article, "Deadline Nears for California SBA Disaster Loan Applications" was first published on Small Business Trends