Francisco Sánchez Jr., associate administrator for the Office of Disaster Recovery and Resilience at the Small Business Administration (SBA), has reminded small businesses in California about the upcoming deadline to apply for federal disaster loans. The deadline, set for November 19, is for economic injury caused by severe storms and flooding that occurred from January 21 to 23.
Sánchez noted that small nonfarm businesses, small agricultural cooperatives, businesses engaged in aquaculture, and most private nonprofit organizations can apply for Economic Injury Disaster Loans up to $2 million. These loans aim to cover working capital needs impacted by the disaster. “Economic Injury Disaster Loans may be used to pay fixed debts, payroll, accounts payable and other bills that cannot be paid because of the disaster’s impact. Economic injury assistance is available regardless of whether the applicant suffered any property damage,” Sánchez stated.
These low-interest loans are accessible in Imperial, Orange, Riverside, and San Diego counties in California. The interest rate is set at 4 percent for businesses and 3.25 percent for private nonprofit organizations with repayment terms extending up to 30 years. Loan amounts and terms depend on each applicant’s financial situation.
Interest on these loans begins accruing 12 months after the first disbursement, with repayment starting one year after this initial disbursement.
As of October 15, it was announced that funds allocated for the Disaster Loan Program have been exhausted. New loans cannot be issued until Congress provides additional funding; however, applications will still be accepted and processed to prepare individuals and businesses for when funds become available again.
Applicants are urged to submit their applications promptly online or contact SBA’s Customer Service Center at (800) 659-2955 or via email at [email protected] For those who are deaf or hard of hearing or have a speech disability, telecommunications relay services can be accessed by dialing 7-1-1.
