SBA approves $2 billion in disaster loans
Nov. 12, 2017 at 9:49 p.m.
Updated Nov. 13, 2017 at 12:18 p.m.
The U.S. Small Business Administration has approved more than $2 billion in disaster loans in response to Hurricane Harvey.
As of Thursday, the SBA had approved about $2,243,270,000 in disaster loans for residents affected by Harvey, said John Frederick, SBA spokesman. In Victoria County, the agency has approved $12.8 million in disaster loans.
The deadline to apply for disaster loans has been extended to Nov. 30, he said, and anyone can apply, not just business owners.
The SBA offers low-interest disaster loans to nonprofits, homeowners, renters and business owners.
The agency works in partnership with the Federal Emergency Management Agency to offer the loans. If someone has applied for FEMA assistance, they need to complete the SBA part of the application because it's part of the process.
"At this point, it's an investment in themselves," Frederick said. "It can be used as a safety net. Once again, you're under no obligation to take out a loan, but it is part of the process. If you haven't engaged in the whole disaster process, that means, then, you're leaving money on the table."
After the SBA disaster loan process is completed, other grants may be available to a FEMA applicant, Frederick said.
Businesses of all sizes and private nonprofit organizations may borrow up to $2 million to repair or replace damaged or destroyed real estate, machinery and equipment, inventory and other business assets, according to a news release. The SBA can also lend additional funds to help businesses and residents with the cost of making improvements that protect from, prevent or minimize the same type of disaster damage in the future.
For small businesses and most private nonprofit organizations of all sizes, SBA offers economic injury disaster loans to help meet working capital needs caused by the disaster. Economic injury assistance is available regardless of whether the business suffered any property damage.
Disaster loans up to $200,000 are available to homeowners to repair or replace their damaged or destroyed primary residences. Homeowners and renters are eligible for up to $40,000 to repair or replace damaged or destroyed personal property.