Deadline to Apply for SBA Now Extended to January 30!

sba loan deadlineAs business owners, homeowners, and renters are navigating their way through the physical damage to their buildings and property as a result of Hurricane Sandy, the Small Business Administration stands ready to help.  A very important thing to note; you do not necessarily need to be the owner of a Small Business to qualify for low interest SBA loans.

The U.S. Small Business Administration (SBA) is now offering disaster recovery loans to business owners, home owners and renters who suffered losses due to Hurricane Sandy in the States of New York, New Jersey and Connecticut.

Interest rates for business recover loans range from 4.0% to 6.0%, depending on the availability of non-SBA credit. Interest rates for home recovery loans range from 1.688% to 3.375%, depending on the availability of non-SBA credit.

Deadline: The deadline to apply for home and business damage recovery loans is December 31, 2012.

How does SBA help businesses, homeowners and renters recover?

Three main ways:

1. Businesses and nonprofit organizations of any size can apply for a low-interest disaster loan of up to $2 million to repair or replace damaged real estate or inventory.

2. Small businesses and nonprofit organizations of any size can apply for Economic Injury Disaster Loans, also up to $2 million.  With all of the power outages and evacuations, we know that many small businesses made it through the storm, but they’ve lost significant amounts of business.  In many cases, these businesses will be eligible for EIDL loans to help cover their working capital needs, regardless of whether the business suffered property damage.

3. Finally, homeowners can apply for loans of up to $200,000 to repair damaged real estate.  Homeowners and renters can also apply to borrow up to $40,000 to repair or replace personal property damaged by the storm.  In addition, the SBA can sometimes increase a loan by up to 20 percent to make structural improvements that lessen the risk of property damage by future disasters of the same kind.

Once the disaster declaration is made for your area, there are several ways to apply:

If you are a survivor, it’s important to take that the first step is to register with FEMA, by calling 1-800-621-FEMA or going online to www.disasterassistance.gov on your computer or mobile device.