3 minute read
Low Interest Disaster Assistance Loans
Advertisement
In 2020, Texas has fallen victim to tornados, hurricanes and tropical storms. And while hurricane season officially ended on November 1, our state is always at risk for weather-related disasters.
Did you the know the U.S. Small Business Administration not only provides loans due to COVID-19, but also disaster assistance in the form of lowinterest loans to businesses located in regions affected by declared disasters? Disaster could be hurricanes, severe storms, flooding, tornadoes, wildfires, or other disasters.
There are different types of disaster loans. Below we highlight two, specific to businesses:
Business Physical Disaster Loans
Any business or organization located in a declared disaster area and that incurred damage during the disaster may apply for a loan to help replace or restore damaged property. Businesses of any size may apply to the SBA for a loan to recover after a disaster.
Loan Amounts and Use. SBA makes physical disaster loans of up to $2 million to qualified businesses or most private nonprofit organizations. These loan proceeds may be used for the repair or replacement of the following: real property, machinery, equipment, fixtures, inventory and leasehold improvements.
The SBA Business Physical Disaster Loan covers disaster losses not fully covered by insurance. If you are required to apply insurance proceeds to an outstanding mortgage on the damaged property, you can include that amount in your disaster loan application.
If you make improvements that help reduce the risk of future property damage caused by a similar disaster, you may be eligible for up to a 20 percent loan amount increase above the real estate damage, as verified by the SBA.
You may not use the disaster loan to upgrade or expand a business, except as required by building codes.
Economic Injury Disaster Loans
If you are in a declared disaster area and have suffered economic injury regardless of physical damage, you may qualify for an Economic Injury Disaster Loan (EIDL).
Loan Amounts and Use. Substantial economic injury means the business is unable to meet its obligations and to
pay its ordinary and necessary operating expenses. EIDLs provide the necessary working capital to help small businesses survive until normal operations resume after a disaster.
The SBA can provide up to $2 million to help meet financial obligations and operating expenses that could have been met had the disaster not occurred. Your loan amount will be based on your actual economic injury and your company’s financial needs, regardless of whether the business suffered any property damage.
EIDL assistance is available only to small businesses when SBA determines they are unable to obtain credit elsewhere.
A business may qualify for both an EIDL and a physical disaster loan. The maximum combined loan amount is $2 million.
The process to apply for disaster assistance is simple. To qualify, your business or home must be in an affected area as stated by a disaster declaration. To see if a disaster declaration exist for your area, go to https://disasterloan.sba.gov/ela/ Declarations/Index.
For more information and to apply, https://disasterloanassistance.sba.gov/.
For additional information, please contact the SBA disaster assistance customer service center. Call 1-800-659-2955 (TTY: 1-800-877-8339) or e-mail disastercustomerservice@sba.gov.
MEMBER Disability Insurance • Farm & Ranch • Employee Benefits • Long Term Care Financial & Estate Planning • Home & Auto • Life Insurance
Is the missing piece worth THE RISK
Other propane owners have come to our agency to get help with connecting their insurance pieces:
1) Some have grown frustrated with the lack of timely response and personal service from their current agent. 2) Many have discovered a missing piece of coverage after meeting with us.
3) Most tell us they have no idea what companies insure their industry and are surprised to learn there are multiple options available.
Colton King Longhorn Propane LP
“We chose Marshall Young because of their personal service and industry knowledge. Their same day service simplifies my day to day business operations. Rusty and his team are always there when you need them.”
