The U.S. Small Business Administration (SBA) has announced that low-interest disaster loans are now available to businesses and residents in Mississippi affected by the severe storms and tornadoes from April 8-11. This follows a Presidential disaster declaration.
The declaration includes Hancock, Hinds, Humphreys, Madison, Neshoba, and Scott counties in Mississippi, which are eligible for both Physical and Economic Injury Disaster Loans. Small businesses and most private nonprofit organizations in adjacent counties can apply for Economic Injury Disaster Loans (EIDLs). These counties include Attala, Claiborne, Copiah, Harrison, Holmes, Jasper, Kemper, Lauderdale, Leake, Leflore, Newton, Pearl River, Rankin, Sharkey, Simpson, Smith, Stone, Sunflower, Warren, Washington, Winston, and Yazoo in Mississippi, and St. Tammany Parish in Louisiana.
Disaster survivors are encouraged not to wait for insurance settlements before applying for a disaster loan. If the extent of their loss is uncertain, the SBA can provide a loan for the total loss up to its limits, with the borrower agreeing to use insurance proceeds to reduce or repay the loan.
Businesses and private nonprofit organizations of any size can borrow up to $2 million to repair or replace disaster-damaged real estate, machinery, equipment, inventory, and other assets. For small businesses, agricultural cooperatives, aquaculture businesses, and most private nonprofits, the SBA offers EIDLs to help meet working capital needs caused by the disaster, regardless of physical property damage.
Homeowners can apply for disaster loans up to $500,000 to repair or replace damaged real estate, and renters and homeowners are eligible for up to $100,000 to repair or replace personal property.
Applicants may be eligible for a loan increase of up to 20% of their physical damages for mitigation purposes, which could include improvements like safe rooms, storm shelters, sump pumps, French drains, or retaining walls to protect against future damage.
Interest rates for these loans are as low as 4% for businesses, 3.25% for nonprofit organizations, and 2.688% for homeowners and renters, with terms up to 30 years. Interest does not accrue, and monthly payments are not due, until 12 months from the date of the initial disbursement. Loan amounts and terms are based on the applicant’s financial condition.
“The opportunity to include measures to help prevent future damage from occurring is a significant benefit of SBA’s disaster loan program,” said Francisco Sánchez, Jr., associate administrator for the Office of Disaster Recovery and Resilience at the SBA. “I encourage everyone to consult their contractors and emergency management mitigation specialists for ideas and apply for an SBA disaster loan increase for funding.”
Survivors are encouraged to apply for FEMA grants and SBA disaster loans simultaneously to fully recover. FEMA grants cover necessary expenses and serious needs not paid by insurance or other sources. The SBA disaster loan program is designed for long-term recovery, to restore pre-disaster conditions. Applications and additional disaster assistance information are available at sba.gov/disaster.
For more information, applicants can call SBA’s Customer Service Center at (800) 659-2955 or email disastercustomerservice@sba.gov. For those who are deaf, hard of hearing, or have a speech disability, dial 7-1-1 to access telecommunications relay services.
The deadline to apply for physical property damage is August 9, 2024. The deadline for economic injury applications is May 10, 2025.
Image: Depositphotos
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