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Log In / Register | Dec 15, 2017

Small Businesses, Non-Profits, Homeowners and Renters Eligible for SBA Disaster Loans

Small businesses in the Hurricane Harvey area are eligible for SBA loans plus special treatment on loans they may already have. Less known is the fact that homeowners, renters, and even private non-profits affected by Harvey are also eligible for SBA loans. Those interested in applying for the loans are urged not to delay.

Almost 40 percent of small businesses never reopen following a disaster, according to FEMA, which adds that just a few inches of water can cause tens of thousands of dollars in damage. The Small Business Administration provides physical disaster loans as well as economic injury loans, each at a cap of $2 million.

Effective immediately, the SBA is providing an automatic 12-month deferment of principal and interest payments for SBA-serviced business and disaster loans that were in “regular servicing” status on August 25, 2017 in the primary counties designated as Federal disaster areas. Interest will continue to accrue on the loans involved. Borrowers will be notified of the automatic deferment on their monthly payment notices (SBA Form 1201).

Borrowers that are located in counties or parishes contiguous to the primary county in the disaster areas and who have suffered an adverse impact because of the disaster may be eligible for 9 months of deferment of principal and interest payments on SBA-serviced business and disaster loans. Such borrowers are not automatically deferred, but may request a deferment through the SBA office servicing the loan. Those requests will be evaluated on a case-by-case basis.

The SBA is also strongly encouraging 7(a) Lenders, Certified Development Companies (CDCs) (as well as third party lenders that provide the private sector financing for 504 projects), and Microlenders to provide similar deferment relief for borrowers with lender or CDC-serviced SBA-business loans in the primary disaster areas and contiguous counties/parishes.

Each declared disaster [in this case, Hurricane Harvey] will have a filing deadline in which all applications for assistance must meet. This is usually 60 days from declaration for physical damages and nine months for economic damages. These deadlines may be extended at the agency’s discretion. — NAV

The loan applicatiion can be made online.

Helpful links:

SBA Hurricane Harvey deferment notice

How to Get an SBA Disaster Loan after Hurricane Harvey (by NAV)

SBA Disaster loan assistance gateway page

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