Now that Tropical Storm Arthur has turned into Hurricane Arthur, small business owners on the East Coast must prepare for potential economic losses, from a dip in customers to having to spend time and money repairing damage to storefronts. Business-specific costs abound as well, such as spoiled food at restaurants from lost power.
One option to keep in mind is the Small Business Association’s disaster loan program, which will be available for small business owners who have suffered damage from the hurricane.
What are SBA Disaster Loans?
SBA Disaster Loans are low-interest, long-term loans for damages caused by a natural disaster. Their loans are available for physical damage to businesses as well as economic damage as a result of the disaster.
|Loan||Who is eligible||Cap||Uses||Interest Rate|
|Physical Disaster Loans||Businesses of all sizes and nonprofits||$2 million||Repair damaged real estate, equipment, inventory and fixtures||<4% if you do not have credit elsewhere<8% if you do have credit available elsewhere|
|Economic Injury Disaster Loans||Small businesses, small agricultural cooperatives, small aquaculture businesses and most nonprofits||$2 million||Expenses the businesses would have paid if the disaster had not occurred||<4%|
How do you apply for an SBA Disaster Loan?
Evacuation sign image via Shutterstock.