SBA Disaster Loans Can Help Businesses Recover

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Release date: 
November 9, 2011
Release Number: 
4019-096

RALEIGH, N.C. -- Businesses of all sizes in North Carolina disaster-designated counties that suffered damage or loss because of Hurricane Irene need to know they can apply for low-interest disaster loans.

The Small Business Administration, a federal partner with the Federal Emergency Management Agency in disaster recovery, can make loans to homeowners, renters, businesses of all sizes and private, nonprofit organizations to repair or replace damaged property.

While FEMA grants and SBA loans are available to homeowners and renters for their primary residences, even owners of rental property can apply for an SBA loan to rebuild or refurnish.
A business disaster loan is to restore property to pre-disaster condition, not to upgrade or expand.

A physical disaster business loan for uninsured or under-insured losses can be up to $2 million to repair or replace damaged real estate, equipment, inventory and fixtures. Additional funding may be available for measures to help protect the property against future disasters of the same type.

Businesses may apply directly to the SBA, which will send an inspector to estimate the cost of the damage, once a completed loan application is received.

Whether or not they had physical damages, small businesses and nonprofit organizations that sustained economic injury after the disaster may also be eligible for financial assistance in the form of a working capital loan.

Economic injury disaster loans may be an option for small businesses, small agricultural cooperatives, small businesses engaged in aquaculture, and certain private, nonprofit organizations to meet necessary financial obligations – expenses the business would have paid if the disaster had not occurred. This type of loan may also be up to $2 million.

Nov. 30 is the deadline to apply for loans for physical damage. May 31, 2012, is the application deadline for economic injury disaster loans.

In-person SBA loan application assistance is available at four disaster loan outreach centers in locations formerly used for state/FEMA disaster recovery centers in Beaufort, Craven, Dare and Pamlico counties and at the business recovery center in Buxton that has been open since Sept. 17.

Hours are 8 a.m. to 5 p.m. Monday through Friday (except Veterans Day, Nov. 11) until further notice at two locations in Dare County:

Dare County Center
950 Marshall Collins Drive, Room 103
Manteo, NC 27954

Fessenden Center
46830 Highway 12
Buxton, NC 27929

SBA disaster loan outreach centers at the following locations will be open 8 a.m. to 5 p.m. Monday through Thursday through Nov. 17 when they will cease operations.

Beaufort County
Mid-Atlantic Safety Council
2871 Highway 17 South
Chocowinity, NC 27817

Craven County
Former Eckerd Drug Store
710 Degraffenreid Ave.
New Bern, NC 28560

Pamlico County
Grantsboro Town Hall
10628 Highway 55
Grantsboro, NC 28529

Help also is available from the SBA Customer Service Center at 800-659-2955 (TTY 800-877-8339), by e-mail at disastercustomerservice@sba.gov or online at www.sba.gov.

Disaster recovery assistance is available without regard to race, color, religion, nationality, sex, age, disability, English proficiency or economic status.  If you or someone you know has been discriminated against, call FEMA toll-free at 800-621-FEMA (3362). For TTY call 800-462-7585.

FEMA’s temporary housing assistance and grants for public transportation expenses, medical and dental expenses, and funeral and burial expenses do not require individuals to apply for an SBA loan. However, applicants who receive SBA loan applications must submit them to SBA loan office...

Last Updated: 
July 16, 2012 - 18:46
State/Tribal Government or Region: 
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