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SBA approves $50M in disaster assistance loans for CA residents & businesses

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Posted at 11:05 AM, Mar 07, 2023

The U.S. Small Business Administration Office (SBA) of Disaster Recovery and Resilience announced Monday that more than $50.2 million has been approved in federal disaster loans for California businesses and residents impacted by severe winter storms, flooding, landslides, and mudslides that occurred from Dec. 27, 2022, through Jan. 31, 2023.

According to Tanya N. Garfield, SBA's Disaster Operations Center-West director, SBA approved $6,964,000 for businesses and $43,239,200 for residents to help rebuild and recover.

SBA disaster loan borrowers have up to one year from the date of the note to begin making payments. In addition, interest does not begin to accrue until 12 months from the date of the initial loan disbursement and accrues only on the amount disbursed.

SBA continues to provide one-on-one assistance to disaster loan applicants at all the federal-state Disaster Recovery Centers, SBA Business Recovery Centers and SBA Disaster Loan Outreach Centers throughout the affected areas to explain SBA’s disaster loan program and help business owners and residents apply for assistance and close their approved disaster loans.

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. The SBA can also lend additional funds to help business and residents with the cost of making improvements that protect, prevent or minimize the same type of disaster damage from occurring 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 damaged or destroyed real estate. Homeowners and renters are eligible for up to $40,000 to repair or replace damaged or destroyed personal property.

The deadline to apply for property damage is March 16. The deadline to apply for economic injury is Oct. 16.

Applicants may apply online, receive additional disaster assistance information and download applications at disasterloanassistance.sba.gov/. Applicants may also call SBA’s Customer Service Center at (800) 659-2955 or email disastercustomerservice@sba.gov for more information on SBA disaster assistance.

For people who are deaf, hard of hearing, or have a speech disability, please dial 7-1-1 to access telecommunications relay services.

Completed applications should be mailed to U.S. Small Business Administration, Processing and Disbursement Center, 14925 Kingsport Road, Fort Worth, TX 76155.