In just three weeks the Small Business Association has approved $7.8 million in disaster assistance loans for victims of the Valley Fire.
But that number reflects approvals for just 67 homeowners or renters and five businesses or nonprofit organizations. With final deadlines pegged at Nov. 23 for physical damage claims and June 22 of next year to cover economic injury, that figure is expected to grow dramatically.
“This is a good start, but we’ve got a lot of work to do still,” said SBA public information officer Susheel Kumar. “There are more applications in the pipeline.”
Only now are businesses and individuals beginning to tally the economic loss caused by the Valley Fire and approach the SBA after filing with the Federal Emergency Management Agency.
Economic Injury Disaster Loans provide low interest capital loans to help small businesses, small agricultural cooperatives and most private, non-profit organizations of all sizes meet their ordinary and necessary financial obligations that cannot be met as a direct result of the disaster.
The law limits such loans $2,000,000 for alleviating economic injury caused by the disaster. The actual amount of each loan is limited to the economic injury determined by SBA, less insurance.
“The economic injury loan process is a one of a kind,” Kumar observed, pointing out that few banks will offer low interest loans to cover potential lost business.
Low interest SBA loans are available to those affected by the fire to cover loss to homeowners or renters to repair or replace real estate or personal propert, businesses damaged or destroyed (including loss of inventory) and private nonprofit organizations.
Loans have limits, but also come with generous grace periods, low interest and a 30 year repayment.
“The SBA’s specific job is to take care of long term recovery,” Kumar said.
