Deadline Approaching for SBA Disaster Loans Due to Smith River Complex Fire

California small businesses have until August 6, 2024, to apply for an SBA federal disaster loan for economic injury due to the Smith River Complex Fire. This fire, which occurred on August 15, 2023, affected Del Norte County.

Francisco Sánchez Jr., the associate administrator for the Office of Disaster Recovery and Resilience at the Small Business Administration (SBA), emphasized the importance of this deadline. He noted that small nonfarm businesses, small agricultural cooperatives, small businesses engaged in aquaculture, and most private nonprofit organizations of any size are eligible to apply. These Economic Injury Disaster Loans (EIDL) offer up to $2 million to help meet working capital needs resulting from the disaster.

“Economic Injury Disaster Loans may be used to pay fixed debts, payroll, accounts payable, and other bills that cannot be paid because of the disaster’s impact. Economic injury assistance is available regardless of whether the applicant suffered any property damage,” said Sánchez.

These low-interest federal disaster loans are available to businesses and organizations in Del Norte, Humboldt, and Siskiyou counties in California, as well as Curry and Josephine counties in Oregon.

The loans feature an interest rate of 4 percent for businesses and 2.375 percent for private nonprofit organizations, with terms extending up to 30 years. The loan amounts and terms are determined by the SBA based on the financial condition of each applicant. Importantly, interest does not begin to accrue until 12 months from the date of the first loan disbursement, and repayment also starts 12 months from the first disbursement.

Applicants can apply online and find additional disaster assistance information at SBA.gov/disaster. For more details, businesses can call the SBA’s Customer Service Center at (800) 659-2955 or email disastercustomerservice@sba.gov. For those who are deaf, hard of hearing, or have a speech disability, telecommunications relay services can be accessed by dialing 7-1-1.

This financial support aims to help affected businesses and organizations recover and maintain their operations during this challenging time. Timely application is crucial to secure the needed funds and support economic recovery in the affected areas.

Image: Depositphotos

This article, "Deadline Approaching for SBA Disaster Loans Due to Smith River Complex Fire" was first published on Small Business Trends