The Small Business Administration (SBA) provides various loans for small businesses that have experienced an emergency. While each has different characteristics, all of them are in place to help a business when economic or physical damage occurs after a disaster.
An SBA disaster loan lets you replace or repair the personal property, real estate, inventory, business assets, and machinery and equipment. However, this loan cannot be used to expand operations. Instead, these loans are only provided to restore things to the way they were before a disaster occurred.
Home and Personal Property Loans
One example of an SBA disaster loan is available for those who reside in a disaster area and who have been victims of that disaster. Relief is provided through these loans and is the only option that can be utilized by people other than business owners. All it takes to qualify is being a resident in an area where a disaster has struck.
Business Physical Disaster Loans
For organizations and businesses in a disaster area who have had damage during a disaster, this is the right loan for you to apply for. Some examples of disasters that apply include floods and hurricanes. With this SBA disaster loan, you can get up to $2 million, and the funds are designed to help restore and replace the areas of the property that have been damaged.
Military Reservists Economic Injury Loans
This is a specific loan that can only be used for business owners who employ at least one military reservist who has been called into active duty. If you are in this kind of situation, SBA funding can help with your operating costs.
There are also several loans available for the current coronavirus pandemic, which many businesses will qualify for. If you’re ready to learn more about your options, reach out to us at Third Bay Capital. We can help you find the right solution!