The Small Business Administration (SBA) joined with the North Augusta Chamber of Commerce to explain the types of loans available to recover after the storm.
SBA is best known for assisting small businesses with financial needs, including startup and disaster recovery. However, the agency held a workshop on Friday to explain it can also help homeowners, renters, and nonprofit organizations.
Stephen Clark, Public Affairs Specialist, told ABD they hold workshops like the one in North Augusta to reach as many people as possible.
“We do have physical damage disaster loans for homeowners and renters, and so that would cover either, if you’re a homeowner, damage to the structure of your home, but also for homeowners and renters, we have funds available for the contents, so for personal property that may have been damaged,” he explained. “Maybe a tree crushed your car, and you can use the personal property loan to replace a motor vehicle that was damaged. You can use it to do things like pay for an insurance deductible, because maybe the car is covered, but you need the money for the deductible, and so you use your SBA money for that.”
He said SBA loans can be used to replace furniture, electronics, appliances, and other personal property that may have been damaged or flooded.
In addition to disaster loans for property damage or loss, SBA also offers economic injury disaster loans for nonprofits and small businesses. Those loans provide funds to cover loss of revenue if they suffered disruption because of the storm.
The South Carolina Small Business Development Center can also assist businesses in determining how much they need to recover before making the formal request to SBA.
“They can help you write a disaster recovery business plan so you can figure out what do I need to do? How much do I need as an economic injury disaster loan? What is it going to cost me to replace inventory or to pay for these things to get to a point where I’m back to having a business that’s operating and making money,” said Clark.
Clark said he wants everyone, businesses, homeowners and renters, or nonprofits, to be mindful of the deadline to apply for assistance. The deadline is Nov. 29. There is no application fee, or obligation to accept the money, however making the request ensures eligibility for the funds.
“Something that’s very important that we like to highlight is you can get an SBA physical damage disaster loan for what physical damage, whether you’re a homeowner, renter, business owner, before you receive an insurance settlement,” Clark added. “So, this may be bridge funding of sorts for you. Then when you get your insurance settlement, you’re required to pay down or pay off the SBA loan with the proceeds of the insurance.”
Clark cautioned anyone who may be eligible not to wait until they have filed their insurance claim and received the settlement in case it is not enough to cover damage and losses.
“At that point, it may be too late to apply for an SBA loan, which is why we encourage everyone with physical damage to their home to apply for your SBA disaster loan. Go through the process. Then you can find out what you can get from SBA, and then you have that information, and you may then be able to get the SBA loan much sooner than your insurance and can make the repairs you need,” he said.
There is also a grace period for the SBA loan. For the first year, no payments are required and no interest is accrued.
“The idea is, we want to give you time so that you can get your business back going, get your house situation under control, and that you have time to do that recovery,” he said. “Then if you get your insurance money and that pays off or pays down the SBA loan you have taken care of all of that without just having to make that single payment. So, that can be an option for people.”
There are several ways to apply for SBA assistance. Online at www.SBA.gov/disaster. Applicants may also call SBA’s Customer Service Center at (800) 659-2955 or email disastercustomerservice@sba.gov
Disaster assister assistance centers are still available at the Hub for Community Innovation in Augusta and Aiken Technical College for anyone who prefers to apply in person.
