ATLANTA – Businesses and residents in Puerto Rico affected by the severe storms, flooding and landslides on Feb. 4-6, 2022, can rebuild stronger by applying for a disaster loan from the U.S. Small Business Administration (SBA). To promote resiliency, an SBA disaster loan for physical losses may include funds for mitigation projects to prevent or reduce future property damage from a similar disaster.
Applicants with damages from the recent severe storms, flooding and landslides may be eligible for a loan increase up to 20 percent of their physical damages, as verified by the SBA, to cover the cost of improvements which protects property from or reduces damages from future similar disasters affecting a business or home. Mitigation loan funding is in addition to the amount of the approved loan.
Some examples of mitigation projects to prevent future flooding may include landscaping property to improve water runoff and drainage, elevation of structures, adding a sump pump, or conversion of the lowest floor to flexible space that is less likely to be damaged in a flood. Requests for additional loan funds for mitigation should be made as soon as possible. The SBA will not consider a request for a loan increase received more than two (2) years from the date of loan approval.
Businesses and private non-profit organizations of any size may apply for disaster loans to repair or replace disaster-damaged or destroyed real estate, machinery and equipment, inventory, and other business assets. For small businesses, small agricultural cooperatives, small businesses engaged in aquaculture and most private non-profit organizations, the SBA offers Economic Injury Disaster Loans (EIDL) to help meet working capital needs caused by the disaster. EIDL assistance is available regardless of whether the business suffered any physical property damage. Whether an SBA disaster loan is for repairs, working capital or mitigation, the maximum loan amount for businesses and private non-profit organizations is $2 million.
Disaster loans up to $200,000 are available to homeowners to repair or replace disaster-damaged or destroyed real estate. Homeowners and renters are eligible for up to $40,000 to repair or replace disaster damaged or destroyed personal property, including automobiles. In addition to these limits, homeowners may borrow up to $200,000 for mitigation.
The SBA’s low-interest disaster loan terms for residents and businesses affected by the severe storms, flooding and landslides are designed to be affordable. Interest rates are as low as 2.94 percent for businesses, 1.875 percent for nonprofit organizations and 1.438 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 Cataño, Dorado, Toa Baja, Vega Alta and Vega Baja municipalities in Puerto Rico, 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 municipalities are eligible to apply only for SBA Economic Injury Disaster Loans: Bayamón, Corozal, Guaynabo, Manatí, Morovis, San Juan and Toa Alta in Puerto Rico.
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 toll-free helpline at 800-621-3362. Those who use 711-Relay or Video Relay Services should call 800-621-3362.
Applicants may apply online using the Electronic Loan Application (ELA) via SBA’s secure website at https://disasterloanassistance.sba.gov/ela/s/, and should apply under SBA declaration #17143, not for the COVID-19 incident.
Disaster loan information and application forms can also be obtained by calling the SBA’s Customer Service Center at 800-659-2955 (If you are deaf, hard of hearing, or have a speech disability, please dial 7-1-1 to access telecommunications relay services) or sending an email to DisasterCustomerService@sba.gov. Loan applications can also be downloaded from sba.gov/disaster. Completed applications should be returned to a Center or mailed to: U.S. Small Business Administration, Processing and Disbursement Center, 14925 Kingsport Road, Fort Worth, TX 76155.
The filing deadline to return applications for physical property damage is May 31, 2022. The deadline to return economic injury applications is Dec. 29, 2022.
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About the U.S. Small Business Administration
The U.S. Small Business Administration makes the American dream of business ownership a reality. As the only go-to resource and voice for small businesses backed by the strength of the federal government, the SBA empowers entrepreneurs and small business owners with the resources and support they need to start, grow or expand their businesses, or recover from a declared disaster. It delivers services through an extensive network of SBA field offices and partnerships with public and private organizations. To learn more, visit www.sba.gov.