SBA Offers Rural Disaster Assistance to Florida Businesses and Residents Affected by May Disaster

WASHINGTON - Low-interest federal disaster loans are available to Florida businesses and residents affected by severe storms, straight-line winds and tornadoes that occurred on May 10, announced Administrator Isabel Casillas Guzman of the U.S. Small Business Administration. SBA acted under the Disaster Assistance for Rural Communities Act to declare a disaster in response to a request received from Florida Governor Ron DeSantis' authorized representative Kevin Guthrie, on Aug. 3.

The disaster declaration makes SBA assistance available in Baker, Columbia, Gadsden, Hamilton, Jefferson, Liberty, Santa Rosa and Suwannee counties in Florida.

"SBA's mission-driven team stands ready to help Florida's small businesses and residents impacted by the severe storms and tornadoes," said Administrator Guzman. "We're committed to providing federal disaster loans swiftly and efficiently, with a customer-centric approach to help businesses and communities recover and rebuild."

Businesses of all sizes and private nonprofit organizations may borrow up to $2 million to repair or replace disaster-damaged or destroyed real estate, machinery and equipment, inventory, and other business assets.

For small businesses, small agricultural cooperatives, small businesses engaged in aquaculture and most private nonprofit organizations, the SBA offers Economic Injury Disaster Loans (EIDLs) to help meet working capital needs caused by the disaster. EIDL assistance is available regardless of whether the business suffered any physical property damage.

Disaster loans up to $500,000 are available to homeowners to repair or replace damaged or destroyed real estate. Homeowners and renters are eligible for loans up to $100,000 to repair or replace damaged or destroyed personal property, including personal vehicles.

SBA can also lend additional funds to businesses and homeowners to help with cost of improvement to protect, prevent or minimize future disaster damage. Approved loan may qualify for a loan amount increase of up to 20 percent of their physical damages, as verified by the SBA, for mitigation purposes. Eligible mitigation improvements may include a safe room or storm shelter, sump pump, French drain or retaining wall to help protect property and occupants from future damage.

"The opportunity to include measures to help prevent future damage from occurring is a significant benefit of SBA's disaster loan program, said Francisco Sánchez, Jr., associate administrator for the Office of Disaster Recovery and Resilience at the Small Business Administration. "I encourage everyone to consult their contractors and emergency management mitigation specialists for ideas and apply for an SBA disaster loan increase for funding."

Interest rates are as low as 4% for businesses, 3.25% for nonprofit organizations, and 2.688% for homeowners and renters, with terms up to 30 years. Interest does not begin to accrue, and monthly payments are not due, until 12 months from the date of the initial disbursement. Loan amounts and terms are set by the SBA and are based on each applicant's financial condition.

To apply online and receive additional disaster assistance information visit sba.gov/disaster. Applicants may also call SBA's Customer Service Center at (800) 659-2955 or email [email protected] 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.

The filing deadline to return applications for physical property damage is Oct. 7, 2024. The deadline to return economic injury applications is May 6, 2025.

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About the U.S. Small Business Administration 

The U.S. Small Business Administration helps power the American dream of business ownership. As the only go-to resource and voice for small businesses backed by the strength of the federal government, the SBA empowers entrepreneurs and small business owners with the resources and support they need to start, grow or expand their businesses, or recover from a declared disaster. It delivers services through an extensive network of SBA field offices and partnerships with public and private organizations. To learn more, visit www.sba.gov.