This post provides information for those in the disaster zone about available resources and how to contact them. Please provide the information below to anyone that you believe may benefit directly, or who can distribute information to those in need.
On Tuesday, October 15, the Small Business Administration announced that the increased demand for disaster relief from Hurricane Helene had exhausted funds for SBA’s disaster loan program. SBA has paused new loan offers but is encouraging individuals and small businesses to continue to apply for loans given assurances from congressional leaders that additional funding will be provided upon Congress’s return in November.
During the pause, SBA reports that it is
- Continuing to accept and process new applications from all 173 disaster declarations that it is supporting and queue eligible applicants. Applications in this queue can receive loan offers after additional funding from Congress becomes available and will be processed in the order in which they were received. The SBA will issue declines for new applicants who do not meet eligibility or underwriting criteria for a loan and provide information on additional resources for support.
- Continuing to support existing borrowers and applicants who have already received offers. So far, the SBA reports it has received more than 37,000 applications for relief submitted from those impacted by Hurricane Helene alone. The SBA has already made over 700 Helene loan offers totaling about $48 million. For Hurricane Milton, SBA has already received over 12,000 applications.
- Importantly, despite this funding lapse, borrowers who already have a loan offer will continue to receive disbursements, and borrowers who already have existing loans may continue with servicing actions and loan modifications.
In a statement released Friday evening, October 18, SBA stressed that the pause is temporary, that SBA continues to accept new applications, and provided links to direct survivors to assistance:
… SBA is encouraging individuals and small businesses to continue to apply for loans given assurances from congressional leaders that additional funding will be provided upon Congress’s return in November.
SBA’s loan application portal remains open, SBA’s disaster centers and in-person staff remain deployed across the country, and the agency will continue to accept new applications and ready borrowers to get their disaster loan offers as soon as possible once Congress appropriates funds. Apply for assistance.
Following federally declared disasters, the SBA steps in to provide financial relief to business owners, nonprofits, homeowners, and renters with long-term, low-interest loans. SBA loans allow borrowers to avoid predatory bridge loans or using a credit card with high interest rates. Interest rates are as low as 4% for businesses, 3.25% for nonprofit organizations, and 2.813% for homeowners and renters, without credit elsewhere, and terms are up to 30 years. Interest does not begin to accrue until 12 months from the date of the first disaster loan disbursement, and monthly payments begin 12 months from the date of the initial disbursement. Loan amounts and terms are set by the SBA and are based on each applicant’s financial condition.
Applicants may apply online and receive additional disaster assistance information at sba.gov/disaster. Applicants may also call SBA’s Customer Service Center at (800) 659-2955 or email disastercustomerservice@sba.gov for more information on SBA disaster assistance. People who are deaf, hard of hearing, or have a speech disability should dial 7-1-1 to access telecommunications relay services. Individual survivors are also encouraged to visit disasterassistance.gov for resources including assistance from FEMA.
