SBA Offers Disaster Loans to Businesses and Residents Affected by Tropical Storm Debby in Pennsylvania
The US Small Business Administration (SBA) has announced that low-interest disaster loans are now available to Pennsylvania businesses and residents following the President’s disaster declaration for the damage caused by Tropical Storm Debby on August 9-10.
This disaster declaration allows eligible individuals and businesses in certain counties to apply for financial assistance to recover and rebuild.
Areas Affected
The disaster declaration includes Lycoming, Potter, Tioga, and Union counties, which are eligible for both Physical and Economic Injury Disaster Loans (EIDLs). Adjacent counties, including Bradford, Cameron, Center, Clinton, Columbia, McKean, Mifflin, Montour, Northumberland, Snyder, and Sullivan in Pennsylvania, and Allegany, Chemung, and Steuben in New York, are eligible to apply for SBA Economic only. Personal Injury Disaster Loan.
Types of loans available
The SBA offers several types of disaster loans, including:
- Businesses and Nonprofits: Businesses and private nonprofits of any size can borrow up to $2 million to repair or replace disaster-damaged or damaged buildings, equipment, materials, and other assets.
- Small Businesses: Small businesses, agricultural cooperatives, aquaculture businesses, and many private non-profit organizations may also be eligible for EIDLs to help meet disaster-induced working capital needs. Importantly, these loans are available regardless of whether physical property damage has occurred.
- Landlords and Tenants: Disaster loans of up to $500,000 are available to homeowners to repair or replace damaged or destroyed physical property. Homeowners and renters can also borrow up to $100,000 to repair or replace personal property damaged by the storm.
Loan Terms and Conditions
Loan interest rates are as low as 4% for businesses, 3.25% for nonprofits, and 2.813% for homeowners and renters. Loan terms can extend up to 30 years, depending on the borrower’s financial situation. In addition, interest does not begin to accrue, and no monthly payments are required, until 12 months after the first payment is made.
The SBA sets loan rates and terms based on each applicant’s financial situation. These loans are designed to aid in long-term recovery by helping individuals and businesses restore their assets to pre-disaster condition.
Additional Benefits of Downgrade Loans
In addition to paying for repair costs, the SBA disaster loan program provides an opportunity to rehabilitate with mitigation improvements that can help prevent future damage. Applicants may qualify for a loan amount increase of up to 20% for physical injuries certified by the SBA. This increase can be used for mitigation projects such as safe rooms, storm shelters, sump pumps, French drains, or retaining walls.
Application Process and Deadlines
Disaster survivors are encouraged to apply for an SBA disaster loan even if they are not yet settled with their insurance company. The SBA can provide total loss loans, up to its loan limits, with the condition that the insurance proceeds are used to reduce or repay the loan. Survivors should also apply for FEMA grants that match SBA loans to increase their recovery resources. FEMA grants cover necessary expenses and needs not covered by insurance or other sources, while SBA loans focus on long-term recovery.
Destruction requests must be submitted by November 12, 2024and the deadline for economic damage claims is June 11, 2025.
For more information on the SBA disaster loan program or to apply online, visit www.sba.gov/disaster. Applicants may also call the SBA Customer Service Center at (800) 659-2955 or email disastercustomerservice@sba.gov. For people who are deaf, hard of hearing, or have speech disabilities, 7-1-1 referral services are available.