SAN DIEGO (KGTV) — The Small Business Administration is reminding San Diego small businesses affected by the severe storm and flooding from Jan. 22 that the deadline to apply for a federal disaster loan is coming up on Nov. 19.
“Economic Injury Disaster Loans may be used to pay fixed debts, payroll, accounts payable and other bills that cannot be paid because of the disaster’s impact. Economic injury assistance is available regardless of whether the applicant suffered any property damage,” says Francisco Sánchez Jr., the associate administrator for the Office of Disaster Recovery and Resilience for the SBA.
According to the SBA's press release, the interest rate on these loans is 4% for businesses and 3.25% for private, nonprofit organizations. The terms are up to 30 years. The SBA will set the loan amounts and terms, and they're based on the financial condition of the individual applicants.
Interest on these loans won't start accruing until a year after the date they're first disbursed. Repayment of SBA disaster loans also starts a year after their first disbursement.
The press release says the funds for the disaster loan program were exhausted on Oct. 15; however, the SBA is still accepting and processing applications to make sure people and businesses are ready to receive money when it becomes available.
"While no new loans can be issued until Congress appropriates additional funding, we remain committed to supporting disaster survivors," the press release says.
Follow this link to apply for an SBA federal disaster loan.
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