The U.S. Small Business Administration is encouraging Alabama businesses and residents affected by Hurricane Sally on Sept. 14 -16, 2020 to submit their loan application for physical damages by Nov. 19, even if they have not settled with their insurance company.
“Waiting to file an SBA application could cause unnecessary delays in receiving disaster assistance, and survivors may miss the application deadline. Submitting the loan application is an essential part of the disaster recovery process,” said Michael Lampton, acting director of SBA Field Operations Center East.
If a survivor has not settled their insurance claim, SBA will consider making a loan for the total loss up to its loan limits. The insurance settlement will be used to reduce or repay the loan.
Physical disaster loans are available to homeowners, renters, businesses of all sizes and non-profit organizations to repair or replace disaster-damaged property, including contents and automobiles. For small businesses, small agricultural cooperatives, small businesses engaged in aquaculture and most private nonprofit organizations, the SBA offers Economic Injury Disaster Loans to help meet working capital needs caused by the disaster. Economic Injury Disaster Loan assistance is available regardless of whether the business suffered any physical property damage.
Interest rates are as low as 3 percent for businesses, 2.75 percent for nonprofit organizations and 1.188 percent for homeowners and renters with terms up to 30 years. Loan amounts and terms are set by the SBA and are based on each applicant’s financial condition.
The disaster declaration covers Baldwin, Escambia and Mobile counties in Alabama which are eligible for both Physical and Economic Injury Disaster Loans from the SBA. Small businesses and most private nonprofit organizations in the following adjacent counties are eligible to apply only for SBA Economic Injury Disaster Loans: Clarke, Conecuh, Covington, Monroe, and Washington in Alabama; Escambia, Okaloosa and Santa Rosa in Florida; and George, Greene and Jackson in Mississippi.
Applicants may apply online using the Electronic Loan Application (ELA) via the SBA’s secure website at DisasterLoan.sba.gov. To be considered for all forms of disaster assistance, applicants should register online at DisasterAssistance.gov or download the FEMA mobile app. If online or mobile access is unavailable, applicants should call the FEMA tollfree helpline at 800-621-3362 or (TTY) 800-462-7585. Multilingual operators are available.