Despite helping small businesses during proclaimed disasters like the COVID-19 epidemic, the Economic Injury Disaster Loan (EIDL) program is closed to new applications from qualified enterprises. For companies impacted by disasters, the Small Business Administration also has a few extra services accessible. Following are further details about SBA catastrophe loans.
For whom is an SBA catastrophe loan available?
All for-profit companies (regardless of size), nonprofit organizations, homeowners, and renters impacted by declared disasters are eligible for SBA disaster loans. The loan is available to companies and organizations affected by "disasters," such as civil upheaval and natural disasters like storms, floods, and wildfires.
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SBA catastrophe loan types
Loans for physical damage
This SBA grant may be available to people who live in a declared disaster area and have had physical damage to their homes or personal property.
Whether you own or rent your property determines your eligibility. To repair or replace any damaged products or property for a primary dwelling, homeowners may ask for up to $200,000. To return or repair broken personal items, including clothing, furniture, automobiles, and appliances, renters can borrow up to $40,000.
Mitigation Support
Homeowners and small businesses can qualify for low-interest disaster loans for those impacted by declared disasters. Those eligible might opt to reduce damages and increase funds to defend their residences or places of business from future catastrophes.
You can use mitigation projects for calamities like wind, flood, wildfire, earthquakes, hail, and more. Additionally, you can utilize the money to bolster physical structures, use rooftop equipment, put hail protection in place, and more.
All for-profit companies (regardless of size), nonprofit organizations, homeowners, and renters impacted by declared disasters are eligible for SBA disaster loans.
Economic Damage Loans for Disasters
Suppose you are the owner of a small business, agricultural cooperative, or private nonprofit organization in a disaster area and have sustained a sizable economic injury. In that case, you may be qualified for an SBA Economic Injury Disaster Loan (EIDL).
Firms that have suffered a significant economic injury to the point that they cannot meet their obligations and cover essential running costs are eligible businesses.
Small enterprises that specific disasters have damaged can't operate till they recover.
The SBA has determined that certain small firms are the only ones who can't get credit elsewhere.
Loan to military reservists
Businesses that employ one or more military reservists summoned to active service are eligible for the military reservist loan, also known as the Military Reservist Economic Injury Disaster Loan (MREIDL). To help to qualify small firms with running costs, the SBA will offer loans.
The MREIDL can be requested up to a maximum of $2 million by a company. The SBA determines the exact amount that a business might request concerning the actual economic harm. It is not permitted for companies that can support their financial recovery to qualify for this loan.
How to submit an SBA disaster loan application
Find your designated disaster region by visiting the SBA's website. A summary of the loan application and the possible uses for the money are given on the SBA's page for disaster loan assistance. You can check to see if your specific county or area is covered by a disaster loan here if you live in a state that has been affected by a disaster that the Small Business Administration, the President of the United States, or the Secretary of Agriculture has proclaimed.
Register For A Profile And Confirm Your Identity.
You can submit an online application if your company qualifies for disaster aid. To safely apply for the loan, you must create a Login.gov account. There, you will need to provide the following information to prove your identity:
A driver's license issued by the government.
The social security number you have.
A phone number on a phone plan linked to your name can be used to get a verification code. You can continue the online application after confirming your identity, securing your account, and providing your personal information.
