Disaster loan assistance offered in Jefferson County by the US Small Business Administration

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By Hannah Curran, Editor-in-Chief

JEFFERSON COUNTY – The United States Small Business Administration (SBA) announced the opening of a Business Recovery Center (BRC) at the Hoover Recreation Center in Hoover on Thursday, January 6 to provide businesses with Alabama individual assistance in submitting a disaster loan. if they were affected by the severe storms and flooding of October 6 and 7, 2021.

Photo courtesy of Sharon Gadbois.

SBA has several different programs, but the program that SBA offers in Jefferson County is specifically the Office of Disaster Assistance.

The mission of the Small Business Administration’s Office of Disaster Assistance is to provide low-interest disaster loans to businesses of all sizes, private nonprofit organizations, homeowners, and renters. to repair or replace real estate, personal property, machinery and equipment, inventory and business assets that were damaged or destroyed in the declared disastersaid Sharon Gadbois, public affairs specialist.

Several disaster loans are available to meet the needs of different people in the community:

  • Physical Disaster Business Loans – Business loans to repair or replace disaster-damaged property owned by the business, including real estate, inventory, supplies, machinery and equipment. Businesses of all sizes are eligible. Private non-profit organizations such as charities, churches, private universities, etc. are also eligible.
  • Economic Disaster Loans (EIDL) – Working capital loans to help small businesses, small agricultural cooperatives, small enterprises engaged in aquaculture and most private non-profit organizations of all sizes to meet their ordinary and necessary financial obligations which cannot be met as a direct result of the disaster. These loans are meant to help through the disaster recovery period.
  • Home Disaster Loans – Loans to homeowners or tenants to repair or replace disaster-damaged real estate and personal property, including automobiles.

Gadbois explained that the SBA is helping homeowners, tenants, businesses and nonprofits affected by the October 6-7 floods by offering low interest fixed rate loans that ease the recovery process.

“Anyone who suffered damage from the October floods, resides and/or has a business in Jefferson or Shelby County is eligible,” Gadbois said. “Then, all businesses in the following counties, namely Bibb, Blount, Chilton, Coosa, St. Clair, Talladega, Tuscaloosa and Walker counties are eligible for EIDL Loans or Economic Disaster Loans. So basically we cover underinsured and uninsured losses, SBA loans help repair, replace and rebuild pre-existing conditions.

Limits on loan amounts depend on the type of loan:

  • Business loans – The law limits business loans to $2,000,000 for the repair or replacement of real estate, inventory, machinery, equipment and any other physical losses. Subject to this maximum, loan amounts cannot exceed the verified uninsured catastrophe loss.
  • EIDL – The law limits EIDLs to $2,000,000 to mitigate the economic damage caused by the disaster. The actual amount of each loan is limited to the economic loss determined by the SBA, less business interruption insurance and other recoveries up to the administrative loan limit. EIDL assistance is available only to entities and their owners who cannot provide their own recovery from non-governmental sources, as determined by the US Small Business Administration.
  • Business loan limit – The $2,000,000 statutory limit for business loans applies to the combination of physical, economic, mitigation and refinance harm, and applies to all business and non-business disaster loans. its affiliates for each disaster. If a business is a major source of employment, the SBA has the authority to waive the legal limit of $2,000,000.
  • Home loans – SBA regulations limit home loans to $200,000 for repair or replacement of real property and $40,000 for repair or replacement of personal property. Subject to these caps, loan amounts cannot exceed the verified uninsured catastrophe loss.

“Hhomeowners can use it for the structure of their home,” Gadbois said. “Also debris removal, fencing, landscaping, it can be used for contents inside the home or business, business inventory, machinery, furniture, furniture fittings We also help cover cars and then for economic damage, disaster loans, that’s what we also call EIDL loans, that’s working capital, to help flows the company’s cash flow back to normal operation, basically.

Photo courtesy of Sharon Gadbois.

These funds can be used to prevent shame to reproduce. Jhere’s a mitigation aspect of the loan, so when you talk to a loan officer or case manager, you’ll want to mention mitigation if that’s something you’re interested in.

“You could do things like a safe room or storm shelter, sump pump, elevation, retaining walls and landscaping to help protect the property and occupants from future damage from a similar disaster,” Gadbois said.

You have up to 30 years to repay the loan, and there’s no prepayment penalty either.

“So if someone wanted to pay off the loan early, there would be no charge to do so,” Gadbois said. “Also, the rate for landlords and tenants is 1.563, and for businesses it’s 2.855, and then for nonprofits it’s 2 percent.”

If you are in a declared disaster area, you may be eligible for financial assistance from the SBA. Applicants can apply online, receive additional information about disaster assistance, and upload applications at catastropheloanassistance.sba.gov. Applicants may also call the SBA Customer Service Center at (800) 659-2955 or email [email protected] for more information about SBA disaster assistance. Also, people who are deaf or hard of hearing can call (800) 877-8339. Completed applications should be mailed to US Small Business Administration, Processing and Disbursement Center, 14925 Kingsport Road, Fort Worth, Texas 76155.

The deadline for filing property damage return claims is Monday, February 21, 2022. The deadline for returning economic loss claims is Wednesday, September 21, 2022.

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