Low-interest loans are available for businesses, homeowners, and tenants facing storm damage through the US Small Business Administration and the Federal Emergency Response Agency.
Individuals can borrow up to $ 40,000 to replace their personal property and up to $ 200,000 for damage to their home.
For businesses, loans cover up to $ 2 million in damage to property, equipment or inventory. Small businesses and private nonprofits “suffering the negative financial effects of the disaster” can also receive up to $ 2 million for general expenses “until normal operations resume.”
Interest rates vary depending on whether someone has sufficient funds or borrowing capacity elsewhere. An individual without would pay an interest rate of 1.188 percent with no other credit available or 2.375 percent with other credit available.
Businesses would pay 3% interest if credit was not available elsewhere, or 6% if they had other options. Nonprofits pay an interest rate of 2.75% regardless of other credit options.
The deadline for submitting applications is October 19. The application is available on disastreassistance.gov, the FEMA mobile app or by phone at 800-621-3362.
If the loan is not approved, the SBA will often refer people to FEMA’s Other Needs Assistance program.
Comments: (319) 398-8394; [email protected]
Governor Kim Reynolds (center) reacts to seeing the damage and reconstruction efforts at Cafe Saint Pio during a visit to small businesses in the Czech village affected by the August 10 echo storm in Cedar Rapids on Tuesday, August 25, 2020. (Andy Abeyta / The Gazette)