SBA Low-Interest Loans are Determined Case by Case 

Release Date: August 12, 2008
Release Number: 1763-151

» More Information on Iowa Severe Storms, Tornadoes, and Flooding

DES MOINES, Iowa -- Business owners affected by the recent disaster may be unclear about the aid available, disaster officials said today.

  1. By protecting themselves financially by purchasing coverage for flood damage and business interruption, insurance is the best line of defense for businesses.
  2. No Federal Emergency Management Agency (FEMA) grants are available to for-profit businesses, including rental properties.

SBA offers two kinds of loans:

  1. Businesses may be able to get low-interest disaster loans from the U.S. Small Business Administration (SBA).
  2. Businesses of any size, as well as private non-profit organizations, may be able to borrow up to $2 million to repair or replace damaged or destroyed real estate, machinery and equipment inventory and other business assets.
  3. SBA can also lend additional funds to businesses to make improvements that protect, prevent or minimize the same type of disaster damage from occurring in the future.
  4. SBA offers Economic Injury Disaster Loans to small businesses, as well as to most private, non-profit organizations, to help meet working capital needs caused by the disaster. Those loans may be available regardless of whether the business suffered any property damage.

The majority of SBA disaster loans are approved at low interest rates, typically around 3 percent for homeowners and renters and 4 percent for businesses. However, SBA applications are determined on a case-by-case basis. For information about SBA programs, applicants may call 1-800-659-2955 or TTY 1-800-877-8339.

The deadline to return SBA applications for property damage is Sept. 29, 2008.

The deadline to return economic injury loan applications is February 27, 2009.

FEMA coordinates the federal government's role in preparing for, preventing, mitigating the effects of, responding to, and recovering from all domestic disasters, whether natural or man-made, including acts of terror.

Last Modified: Wednesday, 13-Aug-2008 20:38:45