SBA Disaster Loans
The U.S. Small Business Administration (SBA) can provide low-interest, long term loans to businesses and private nonprofits of all sizes following a disaster. This includes infrastructure assistance to private for-profit (PFP) and private nonprofit (PNP) utilities to restore them to their pre-disaster operability. Loans may be for up to 30 years. There are two loan programs:
Business Physical Disaster Loans (BPDL)
Description: Business Physical Disaster Loans (BPDL) can be used for repair or replacement of disaster damaged property. "Property" includes machinery, equipment, fixtures, inventory, and leasehold improvements. The SBA makes loans of up to $2 million to qualified businesses. If the business is in a special flood hazard area, or if the disaster damage was caused by flooding, it must have flood insurance to get a loan.
Eligibility: Any size businesses and most private-nonprofit organizations may apply.
Eligible Activities: Any business that is in a declared disaster area and has incurred damage during the disaster may apply for a loan. The loans must help return damaged property to its pre-disaster condition through repairs or replacements.
Type and Cost Share: Because this is a loan, there is no cost share.
Application: SBA generally makes a decision on each application within seven to 21 days. After the loan is approved, SBA will notify the applicant of documents that need to be submitted. The loan may be disbursed in increments as needed to make repairs or replacements.
Website: See Business Physical Disaster Loan
Economic Injury Disaster Loan (EIDL)
Description: These loans aid small businesses and most private non-profits that have suffered substantial economic injury (regardless of physical damage) and are in a state, presidential, and USDA declared disaster area. The EIDL is a working capital loan and cannot be used to repair, replace, or purchase physical assets. If the business is in a special flood hazard area, it must have flood insurance before SBA can disburse a loan.
Eligibility: Small businesses and most private-nonprofit organizations may apply.
Eligible Activities: Only businesses that are unable to obtain credit elsewhere can receive EIDLs. The SBA can provide up to $2 million in disaster assistance to a business. This loan cap includes both economic injury and physical damage assistance.
Type and Cost Share: Because this is a loan, there is no cost share.
Application: SBA tries to make a decision on each application within 21 days. After the request is approved, SBA will notify the applicant of documents that need to be submitted. SBA provides the money in installments.
Website: See Economic Injury Disaster Loan