In the aftermath of the devastating floods that recently struck Southeast Texas, both businesses and residents find themselves grappling with significant damage and financial strain. Fortunately, the U.S. Small Business Administration (SBA) has implemented its disaster loan program aimed at providing crucial assistance. These specially designed loans offer much-needed financial support to those impacted, enabling them to begin the process of rebuilding and recovering from the catastrophic effects of the flooding.
Barbara Nitis, a public information officer for SBA, said, “We will soon have disaster recovery centers in which FEMA and SBA will be there to assist survivors. The centers are for individuals who need one-on-one assistance from customer service representatives. This disaster assistance is available to homeowners, renters, businesses, and nonprofit organizations including places of worship.”
For those in one of the impacted counties, the application process is available online at https://lending.sba.gov or through a dedicated customer service number at 1-800-659-2955. The deadline for physical damage loans is July 16, 2024, while Economic Injury Disaster Loans must be applied for by Feb. 18. SBA disaster loans come with a 12-month deferment, 0 percent interest, and no accrual from the date of the first disbursement. Additionally, these loans provide a relocation and refinance option.
Residents and businesses affected by the severe storms, flooding, tornadoes, and straight-line winds that occurred on April 26 onward can now access low-interest federal disaster loans. The Presidential Declaration covers primary counties eligible for both physical damage and economic injury disaster loans, including Harris, Liberty, Montgomery, Polk, San Jacinto, Trinity & Walker. Economic injury disaster loans are available in the contiguous Texas counties of Angelina, Brazoria, Chambers, Fort Bend, Galveston, Grimes, Hardin, Houston, Jefferson, Madison, Tyler and Waller.
Relocation loans offered by SBA are not to be confused with buyout programs. A SBA customer service representative can explain all of the options of disaster loan options, and upon applying, the loan officer will determine eligibility for that applicant.
Once the disaster centers have been established by FEMA and the State, the locations will be announced through Bluebonnet News and other local media, and through the Liberty County Office of Emergency Management.
Businesses
Property Damage: Up to $2,000,000 to repair or replace real estate, machinery and equipment, inventory and other assets that were damaged or destroyed (available to businesses of any size and private, non-profit organizations).
Economic Injury: For businesses and private non-profit organizations suffering adverse financial impacts of the disaster (with or without property loss), up to $2,000,000 for working capital to help pay obligations until normal operations resume.
Individuals and Families
Homeowners: Up to $500,000 to repair or replace real estate damage and up to $100,000 to replace personal property.
Renters: Up to $100,000 to repair or replace personal property.
Interest rates can be as low as 4 percent for businesses, 3.25 percent for private nonprofit organizations and 2.68 percent for homeowners and renters with terms up to 30 years. Loan amounts and terms are set by SBA and are based on each applicant’s financial condition.
See the below fact sheets (in English and Spanish for more details on the SBA loans):
