Businesses and individuals affected by the flood have only until the end of next week to apply with the Small Business Administration for a low-interest disaster loan. The deadline to register for the program is Oct. 13.
In recent weeks, both the number of applicants and the number of loans approved by the agency have increased significantly, according to SBA spokesman Michael Flores. As of Friday, the SBA had received nearly 28,250 applications. Of those, more than 9,700—about one-third— have been approved and thousands more are in the pipeline, Flores says.
The total amount approved for those 9,700 low-interest loans tops $721 million. More than 90% of those loans—some $662 million—are going to individuals. The other $58 million has been approved for businesses.
The reason businesses aren’t receiving as much help as individuals is because they’re not applying in nearly as great a number, Flores says. He speculates this may be because seven weeks after the historic flood many small business owners in the area are just beginning to get a handle on whether they’ll be able to rebuild and how best to finance the undertaking.
Also, though the SBA loan terms are relatively favorable—the agency will lend business up to $2 million at 4% interest—some businesses may not want to incur that kind of debt, not knowing whether their customers and fellow retailers will be returning to the area.
More than 12,000 businesses in the Capital Region are located in flood-affected areas. SBA loans may be used to cover some relocation expenses if a business is forced out of its existing location. Investors with rental property are also eligible for the business loans.
The SBA has established seven business recovery centers around the area, and is also manning tables at the 24 FEMA disaster recovery centers in the state.
—Stephanie Riegel
