US Small Business Administration (SBA) recently announced that it is extending the application deadline for Florida small business owners and residents federal disaster recovery loan By January 12, 2023. Loan amounts can be used to repair physical property damage and cover loss of income related to Hurricane Ian that occurred from September 23 through November 4, 2022.
hurricane ian disaster The declaration includes the following Florida counties:
- flag carrier
- hilly terrain
- Palm Beach
- st johns
Businesses in these counties are eligible for both physical and economic damage disaster loans (EIDL) from the SBA.
Only small businesses and most private nonprofit organizations in the following contiguous counties are eligible to apply for an SBA EIDL:
- indian river
- miami dade
- st lucy
This article explains what you need to know about SBA disaster loans so you can decide whether getting one is the right move for you. Florida Small Business,
What is an SBA disaster loan?
The Small Business Administration offers low-interest disaster loans during times of great need during a crisis. hurricane ian Definitely fits that description. The purpose of these loans is to help small businesses stay open and maintain their property and other assets despite the effects of the disaster. These are not like standard working capital loans used to cover everyday expenses. Their sole purpose is to help small businesses recover from emergencies.
Who Qualifies for an SBA Disaster Loan?
SBA Disaster Loan For small businesses, non-profit organizations, homeowners and renters experiencing financial hardship because of an extreme circumstance beyond their control, usually a disaster or disaster. Hurricane Ian is exactly that type of situation.
What can SBA disaster loan funds be used for?
The money from these loans can help cover a gap in insurance coverage or bridge the time until insurance claims can be processed, and money can be distributed to affected parties.
In situations such as Hurricane Ian, where damage caused by a disaster may not be covered by insurance, the SBA arranges the loan through itself. economic loss disaster loan program,
What is the Economic Injury Disaster Loan Program?
The Economic Injury Disaster Loan (EIDL) program provides funding in the form of loans of up to $2 million to different small businesses based on their needs and how a disaster affects them. Repayment terms and interest rates are usually adjusted to meet the needs of different companies and their ability to pay them back.
EIDL does not cover bodily injuries caused by a disaster. Instead, it pays for economic loss mitigation. Let’s say Hurricane Ian caused significant physical damage to your business. In that case, the proceeds of the loan can pay for repairs, damages, and loss of income during the disaster and reconstruction period.
Be aware that you may qualify for EIDL even if your company was not physically damaged by the storm, but was closed because you, your team members and customers could not access your business assets. In this case, the loan may cover lost business income due to Hurricane Ian.
Florida Governor DeSantis and the Biden administration worked together to declare the parts of Florida affected by Ian as disaster areas so they could qualify for SBA funds and other recovery benefits. The area became a declared disaster on September 24, 2022, before the storm hit the Tampa area, in order to expedite aid to areas that could potentially be harmed by the storm.
What other types of loans are available to help people and businesses affected by Hurricane Ian?
Yes. Florida residents may qualify for two other types of assistance programs:
- home disaster loan Loans are given to homeowners or renters to repair or replace disaster-damaged real estate and personal property, including automobiles.
- business physical disaster loan There are loans given to small business owners to repair or replace hurricane-damaged property owned by Florida businesses. Assets can include real estate, inventory, supplies, machinery and equipment. Businesses of any size are eligible. Private, non-profit organizations such as charities, churches, private universities, etc. may also qualify for this form of government funding.
How do I get approved for an SBA disaster loan?
Small Business Administration or a affiliated lender Will run a regular credit check to make sure you qualify for the SBA’s credit score requirements. Like any loan, the lender assumes a risk, and credit checks help lenders control that risk.
Is it Hard to Qualify for an SBA Disaster Loan?
There is no set minimum credit score you need to qualify for a disaster loan. However, the SBA typically wants a credit score of 620 to 650 or higher. Even if your debt is not that high, you may be eligible for a disaster loan.
What information will I need to apply for a disaster loan?
To complete a disaster loan application, you will need a variety of information about your business, including:
- Your company’s legal and trade name
- your federal EIN or Social Security number
- date of establishment of your business
- the number of employees you have
- a personal financial statement
- schedule of liabilities
- your most recent federal tax return
- Relevant business insurance policy information.
There may be additional information that you will need to confirm as part of the application process. Make sure to read the guidelines before submitting.
How long does it take to get approved for an SBA disaster loan?
These applications are generally expedited, and you can usually be approved for funding within two weeks.
How can I get help with Florida disaster loans?
If you have any questions, you can speak with a Small Business Administration representative at 800-659-2955. You can also visit the Small Business Administration website (SBA.gov.) You can email your question to the SBA Customer Service Center here Disaster Customer Service@sba.gov, Some Florida Emergency Management and Disaster Recovery Centers may also be able to help you. Small Business Development Center of America (SBDCs) often publish information regarding disaster loans. However, it may make more sense to work with Experts at Biz2Credit, They can help you with your application to make sure you get all the money you’re entitled to.