SBA application deadline for special disaster loans is Sept. 28

The U.S. Small Business Administration (SBA) is offering special disaster-related loans in the wake of the horrible July 4 flooding that tore through Kerr County and other counties in central Texas.  While the SBA is currently offering several types of loans, the application deadline for Business Physical Disaster Loans is Sept. 28, and business owners now have less than two weeks to get those applications started.

A Business Physical Disaster Loan is available to businesses in Kerr County and other affected counties.  The loans are intended to help businesses repair or replace disaster-damaged property including real estate, inventory, business supplies, machinery and equipment.

The loan’s amount can be up to $2 million and there is no minimum amount.  If a business is unable to get credit anywhere else, the loan interest rate for businesses is set at 4 percent.  If a business does have the ability to get credit elsewhere, the loan interest rate is 8 percent.

If the disaster was flooding-related, the survivor will be required to acquire and maintain flood insurance to remain eligible for an SBA disaster loan.  SBA requires that flood insurance coverage be the lesser of 1) the total of the disaster loan, 2) the insurable value of the property or 3) the maximum insurance available.

Only uninsured or otherwise uncompensated disaster losses are eligible.

Applicants can go to SBA.gov/disaster to get started.