10/7/2005
SBA Disaster Loans for Businesses
by Laura Fine, Assistant State Director
If you've had damage to your business, the SBA may be able to help you recover or rebuild through low interest disaster loans. Disaster loans are only available to individuals or businesses in declared disaster areas.
SBA has two types of disaster loans for businesses:
1) Business Physical Disaster Loans. Loans to businesses to repair or replace disaster damages to property owned by the business, including real estate, machinery and equipment, inventory and supplies. Businesses of any size are eligible.
2) Economic Injury Disaster Loans (EIDL). Loans for working capital to small businesses and small agricultural cooperatives to assist them through the disaster recovery period. EIDL assistance is available only to applicants with No Credit Available Elsewhere - if the business and its owners cannot provide for their own recovery from non-government sources.
Relocations: Use of SBA disaster loans for relocating is subject to limitations. Generally, victims may relocate where they need to do so for reasons beyond their control. If the victim is forced by state or local authorities to relocate, the amount of eligibility is the replacement cost of the property which must be abandoned.
FAQs regarding SBA Disaster Loans can be accessed at: http://www.sba.gov/disaster_recov/basics/faqs.html.
Businesses may apply directly to the Small Business Administration for possible disaster assistance. For more information visit: http://www.sba.gov or call 1-800-659-2955 or 1-800-877-8339 for hearing impaired.
The Arkansas SBDC can provide assistance with SBA disaster loan applications. Call 1-800-862-2040 or 501-324-9043 to request assistance from the nearest office or visit the ASBDC website at: http://asbdc.ualr.edu/ for a listing of offices.
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