BATON ROUGE, La. — The deadline to apply for Small Business Administration, or SBA, physical damage loans has been extended to Monday, Nov. 14. The deadline was originally scheduled for Thursday, Oct. 13. Business owners, homeowners and renters who experienced damage by the severe August floods are encouraged to apply for SBA disaster loans, as failure to do so may disqualify them from additional federal assistance. Low-interest SBA physical damage loans are the primary source of federal disaster assistance for businesses, nonprofits, homeowners and renters to pay for repairs or replacement costs.
The SBA business physical damage loan covers property damage caused by the recent floods that is not fully covered by insurance or other sources. Businesses and private, nonprofit organizations can apply for up to $2 million to repair or replace business assets.
"We extend our sincere gratitude to our partners at the federal level for their continued support during this recovery process and also for extending the deadline to apply for the Small Business Administration’s physical damage loan,” Louisiana Economic Development Secretary Don Pierson said. “These loans are providing tremendous assistance for small businesses as they continue to recover and re-establish operations. All affected business owners are encouraged to take part in the available loan programs so they can recover their businesses and allow their employees to quickly return to work."
The SBA also provides economic injury disaster loans for businesses. This working capital loan is designed to help small businesses, small agricultural cooperatives, small businesses engaged in aquaculture, and most private, nonprofit organizations of all sizes meet their ordinary and necessary financial obligations that cannot be met as a direct result of the disaster. Applications for the SBA’s economic injury disaster loan will extend into next year, with a final deadline of May 15, 2017. These loans are intended to assist through the disaster recovery period.
Both the business physical damage loan and the economic injury disaster loan have interest rates as low as 4 percent, and the law authorizes loan terms up to a maximum of 30 years. Businesses with available credit may be restricted to a maximum term of 7 years. The SBA sets the installment payment amount and loan term based upon each borrower’s ability to repay.
To date, the SBA has approved more than 10,600 disaster loans in a span of six weeks, and there are still many federal resources available to help small businesses recovery and reopen. Links to loan applications, as well as other flood recovery resources can be found on OpportunityLouisiana.com