The U.S. Small Business Administration (SBA) is notifying small businesses and private nonprofit organizations in California about their eligibility to apply for federal disaster loans. These loans are intended to help offset the economic losses resulting from the Marysville Hotel fire and associated road closures on June 15, 2024. The deadline for applications is May 19.
This announcement pertains to businesses and nonprofits in the California counties of Butte, Nevada, Placer, Plumas, Sierra, Sutter, and Yuba. Under the disaster declaration, the SBA’s Economic Injury Disaster Loan (EIDL) program offers support to eligible small businesses, small agricultural cooperatives, nurseries, and private non-profits impacted by financial losses due to the disaster. Notably, the SBA cannot provide these loans to agricultural producers, farmers, or ranchers, with the exception of aquaculture enterprises.
EIDLs are designed for working capital needs resulting from the disaster and are accessible even if a business or nonprofit did not sustain physical damage. The loans can be used for fixed debts, payroll, accounts payable, and other financial obligations not fulfilled due to the disaster.
"SBA loans help eligible small businesses cover operating expenses after a disaster, which is crucial for their recovery," stated Chris Stallings, associate administrator of the Office of Disaster Recovery and Resilience at the SBA. "These loans not only help business owners get back on their feet but also play a key role in sustaining local economies in the aftermath of a disaster."
The maximum loan amount is $2 million, with interest rates as low as 4% for small businesses and 3.25% for nonprofits, and terms up to 30 years. No interest accrues, and payments are not required for the first 12 months after the initial loan disbursement. Loan amounts and terms are determined based on each applicant's financial situation.
To apply, visit sba.gov/disaster. Applicants can also contact the SBA’s Customer Service Center at (800) 659-2955 or email disastercustomerservice@sba.gov for more details. Those with hearing or speech disabilities should use telecommunications relay services by dialing 7-1-1.
Completed loan applications must be submitted by May 19.
The U.S. Small Business Administration supports small business development through resources and assistance, fostering growth, and recovery from disasters. More information can be found at www.sba.gov.
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