No business owner wants to end up in the position of seeking out disaster relief. But for those who must confront that reality, more federal support has arrived.
The Small Business Administration, the agency that’s charged not only with ensuring the health of America’s businesses but also with rationing out disaster loans to home and small-business owners, announced in early August a slate of enhancements to its disaster relief loan program. Collectively, the changes could help bolster its support of small businesses recovering from hurricanes, wildfires, floods, earthquakes, and other natural disasters.
Disaster loans include home and personal property loans, business physical disaster loans, economic injury disaster loans (EIDL), and military reservist economic injury loans. Business physical disaster loans are capped at $2 million.
Chief among the latest changes: The agency will extend the deferment period on all disaster loans to 12 months, up from five, and will not charge interest during that first year for disaster loans sought out after September 30 of this year. The announcement builds on the SBA’s decision last year to pause payments and interest in the first year for disaster loans approved between September 21, 2022, and September 30, 2023. Prior to this decision, disaster loans began accruing interest during the deferment period.
Write a Reply or Comment
You should Sign In or Sign Up account to post comment.