SBA to Offer Low Interest Disaster Loans to Alabamians Affected by January Tornado
The U.S. Small Business Administration today announced that businesses in Alabama and residents of seven counties affected by the tornado that hit Jan. 25-26 can apply for low-interest loans in the event disaster.
SBA administrator Isabella Casillas said the decision came in response to Gov. Kay Ivey’s request.
The disaster declaration covers Jefferson, Bibb, Blount, St. Clair, Shelby, Tuscaloosa and Walker counties.
“The SBA is firmly committed to providing the people of Alabama with the most effective, customer-focused response possible to assist businesses of all sizes, homeowners and tenants with federal disaster loans,” Guzman said in a press release. “Getting businesses and communities up and running after a disaster is our top priority at SBA.”
The SBA will open a Disaster Lending Awareness Center at the Fultondale Public Library starting Wednesday at 9 a.m. Customer service representatives will be available to answer questions and help people apply for loans. The center will be open from 9 a.m. to 6 p.m. on weekdays and from 10 a.m. to 2 p.m. on Saturday, April 10.
Visitors to the Disaster Loan Awareness Center are encouraged to wear a face mask. The center will remain open until further notice.
“Businesses and private non-profit organizations can borrow up to $ 2 million to repair or replace real estate, machinery and equipment, inventory and other business assets damaged or destroyed by a disaster,” said Tom Todt, district manager of SBA in Alabama.
Small businesses, small farmer cooperatives, small businesses engaged in aquaculture, and most private non-profit organizations may be eligible for SBA Economic Damage Disaster Loans to help meet fund needs. turnover caused by the disaster. Economic Injury Disaster Loan Assistance is available regardless of whether or not the business has suffered property damage.
Kem Fleming, director of the SBA’s Field Operations Center East in Atlanta, said, “Loans of up to $ 200,000 are available for homeowners to repair or replace damaged or destroyed real estate. Homeowners and tenants are eligible for loans of up to $ 40,000 to repair or replace damaged or destroyed personal property. “
Applicants may be eligible for loan amounts up to 20% more than their physical damage, as verified by the SBA. This could be for mitigation upgrades such as a safe room or storm shelter, sump pump, French drain, or retaining wall to help protect against future disasters.
Interest rates are as low as 3% for businesses, 2% for nonprofits and 1.125% for landlords and tenants, with terms of up to 30 years, the SBA said. Loan amounts and terms are set by the SBA and are based on the financial situation of each applicant.
Applicants can apply online using the electronic loan application through the SBA’s secure website at DisasterLoan.sba.gov.
Information is also available by calling the SBA Customer Service Center at 1-800-659-2955 (1-800-877-8339 for the deaf and hard of hearing), or by emailing DisasterCustomerService @ sba. gov. Loan applications can also be downloaded from sba.gov/disaster. Completed claims should be returned to the center or mailed to: US Small Business Administration, Processing and Disbursement Center, 14925 Kingsport Road, Fort Worth, TX 76155. The deadline for submitting requests to return property damage claims is June 1, 2021. The deadline for returning claims for economic damage is January 3, 2022.