2018-07-09 Businesses and Nonprofits Get Smart about low-interest disaster loans from SBA -- press release (2)

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DR-4366-HI NR008 July 9, 2018 HI-EMA-PIO: 808-733-4300 NEWS DESK: 808-851-7928 News Release Businesses and Nonprofit Organizations Find Low-Interest Disaster Loansto Be Smart Business HONOLULU—Businesses and nonprofit organizations on the Big Island are finding that applying for a low-interest disaster loan from the U.S. Small Business Administration can bea smart business decision. Disaster loans provide funding for business owners (including landlords) and private nonprofit organizations with their recovery and are being used to: Repair or replace disaster damaged or destroyed property and business assets, such as equipment and inventory; Economic Injury (working capital) loans to meet payroll and lease obligations during business downtime caused by the disaster; Fund improvements to protect against future damage. “Disaster loans from the SBA are the major source of federal disaster recovery assistance,” said Federal Coordinating Officer Bern Ruizof the Federal Emergency Management Agency. “The interest rates are low—as low as 3.610percent for businesses and 2.5percent for nonprofits.” SBA offers businesses and nonprofits two types of disaster loans: a Physical Disaster Loan and an Economic Injury Disaster Loan. Physical Disaster Loans are used to repair or replace damaged buildings and business assets. Economic Injury Disaster Loans help small businesses, small agricultural cooperatives, aquaculture businesses and most private nonprofits meet financial obligations that they cannot meet because of the disaster. SBA low-interest disaster loans for businesses have several advantages: Applicants donothave to wait for insurance settlements to obtain loans. Low interest disaster loans can provide up to $2 million dollars with terms up to 30 years. SBA offers mitigation loans to help pay for improvements to reduce potential for future damage. These mitigation funds are available for up to 20 percent of the total amount of disaster damage. SBA never charges an application fee or points for its disaster loans. The deadline to apply for a Physical Damage Disaster Loan is Aug. 13, 2018.The deadline to apply for an Economic Injury Disaster Loan is March 14, 2019.