In addition to helping startup businesses secure financing, there are loan programs available for small businesses owners whose businesses have been negatively impacted by a declared disaster.
SBA Disaster Program loans are made available through the SBA for business owners as well as homeowners and renters who have been harmed in a declared disaster. For businesses, loans are available for physical damage to property suffered in a disaster. This includes actual property as well as machinery and equipment, fixtures, and inventory. Additional funds, up to an additional 20% of the loan value, are available to protect property from potentially similar future disasters. These loans are available regardless of whether or not the property was insured.
The SBA also provides loans based on economic injury related to a declared disaster. This loan is available regardless of whether or not any physical damage occurred. The SBA considers economic injury and inability to pay operating costs or meet its financial obligations.
The maximum amount available from these loans is $2 million. The length of term of these loans can be up to 30 years for repayment and interest rates are variable depending availability of alternative sources of funding. The SBA rates specify in cases where alternative funding sources are not available; loan interest rates reach a maximum of 4%. In cases where alternative funding is available, the interest rate ceiling increases to 8%.