Small Business Administration (SBA) Loans – Beware of Looming Deadlines
After a major disaster like Hurricane Harvey, the Small Business Administration (SBA) offers low-interest loans to affected home and business owners who qualify. Interest rates can be as low as 1.75% for homeowners and 3.05% for business owners. Many people depend on these loans to compensate for losses that are not otherwise paid for by insurance or other means.
Homeowners can apply for disaster assistance of up to $200,000 to repair their damaged or destroyed primary residence, and up to $40,000 to repair or replace damaged personal property. Renters are also eligible to apply for up to $40,000 in personal property assistance. Additionally, any size business or nonprofit organization can apply for an SBA loan for physical damage to their business property and may receive assistance up to $2,000,000. For home and business owners affected by Hurricane Harvey, the deadline to apply for a Small Business Administration (SBA) loan for physical damage is
Friday, November 24, 2017.
Most small businesses and private nonprofit organizations can also apply for loans to assist with economic injury sustained as a result of a disaster. Economic injury loans are capped at $2,000,000. The deadline for business owners to apply for economic injury assistance because of losses sustained as a result of Hurricane Harvey is May 25, 2018.
Remember that SBA assistance is a loan, not a grant, and the loan must be repaid.