ATLANTA – The U.S. Small Business Administration (SBA) is reminding businesses, private nonprofit organizations, homeowners and renters in Virginia affected by Tropical Storm Helene from Sept. 25 through Oct. 3, 2024, to apply for physical damage disaster loans by the Dec. 2 deadline.
Those affected by the disaster should not wait to settle with their insurance company before applying for a disaster loan. If a survivor does not know how much of their loss will be covered by insurance or other sources, SBA can make a low-interest disaster loan for the total loss up to its loan limits, provided the borrower agrees to use insurance proceeds to reduce or repay the loan.
To assist small businesses and nonprofit organizations with their loan applications, the SBA opened a Business Recovery Center (BRC) in Galax, Virginia. “Our BRCs are one of the most powerful resources at SBA’s disposal to support business owners in the midst of a disaster,” said “Francisco Sánchez, Jr., associate administrator for the Office of Disaster Recovery and Resilience at the SBA. “Business owners can meet in-person with our specialists to apply for SBA disaster loans and get information on the full breadth of our programs designed to help them navigate their recovery.”
Customer Service Representatives at the BRC will assist businesses and residents complete their disaster loan application, accept documents, and provide updates on an application’s status. Walk-ins are accepted, but you can schedule an in-person appointment at any Recovery Center in advance at appointment.sba.gov. The BRC’s hours of operation are:
Business Recovery Center (BRC)
Independent City of Galax County
Crossroads Institute
1117 E Stuart Drive
Galax, VA 24333
Hours: Monday – Saturday, 8 a.m. to 6 p.m.
Closed: Sunday
The disaster declaration covers Bedford, Bland, Carroll, the Independent City of Galax, Giles, Grayson, Lee, Montgomery, Pittsylvania, Pulaski, the Independent City of Radford, Russell, Scott, Smyth, Tazewell, Washington, Wise and Wythe in Virginia, which are eligible for both Physical damage and Economic Injury Disaster Loans (EIDL) from the SBA. Small businesses and most private nonprofit organizations in the following adjacent counties are eligible to apply only for SBA EIDLs: Amherst, the Independent City of Bristol, Buchanan, Botetourt, Campbell, Craig, the Independent City of Danville, Dickenson, Floyd, Franklin, Halifax, Henry, the Independent City of Lynchburg, Patrick, Rockbridge and Roanoke in Virginia; Bell, Harlan, Letcher and Pike in Kentucky; Alleghany, Ashe, Caswell, Rockingham and Surry in North Carolina; Claiborn, Hancock, Hawkins, Johnson and Sullivan in Tennessee; and McDowell, Mercer, Monroe and Summers in West Virginia.
Businesses and private nonprofit organizations of any size may borrow up to $2 million to repair or replace disaster-damaged or destroyed real estate, machinery and equipment, inventory, and other business assets.
Disaster loans up to $500,000 are available to homeowners to repair or replace disaster-damaged or destroyed real estate. Homeowners and renters are eligible for up to $100,000 to repair or replace disaster-damaged or destroyed personal property.
Interest rates are as low as 4 % for businesses, 3.25 % for nonprofit organizations, and 2.813 % for homeowners and renters, with terms of up to 30 years. Interest does not begin to accrue, and monthly payments are not due, until 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.
On Oct. 15, 2024, it was announced that funds for the Disaster Loan Program have been fully expended. While no new loans can be issued until Congress appropriates additional funding, we remain committed to supporting disaster survivors. Applications will continue to be accepted and processed to ensure individuals and businesses are prepared to receive assistance once funding becomes available.
Applicants are encouraged to submit their loan applications promptly for review in anticipation of future funding.
The filing deadline to return applications for physical property damage is Dec. 2, 2024. The deadline to return economic injury applications is July 1, 2025.
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About the U.S. Small Business Administration
The U.S. Small Business Administration helps power the American dream of business ownership. 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.