Low-interest disaster loans from the U.S. Small Business Administration (SBA) are available to residents and businesses in North Carolina following the announcement of a Presidential disaster declaration for Hurricane Helene.
In North Carolina, the disaster declaration covers Alexander, Alleghany, Ashe, Avery, Buncombe, Burke, Caldwell, Catawba, Clay, Cleveland, Gaston, Haywood, Henderson, Jackson, Lincoln, Macon, Madison, McDowell, Mitchell, Polk, Rutherford, Transylvania, Watauga, Wilkes, and Yancey counties and The Eastern Band of the Cherokee Indians. Residents and businesses in these areas are eligible for both Physical and Economic Injury Disaster Loans (EIDL) from the SBA. Several other counties in North Carolina, Georgia, South Carolina, Tennessee, and Virginia are only eligible for EIDL.
Disaster survivors should not wait to settle with their insurance company before applying for a disaster loan. If a survivor does not know how much of their loss will be covered by insurance or other sources, SBA can make a low-interest disaster loan for the total loss up to its loan limits, provided the borrower agrees to use insurance proceeds to reduce or repay the loan.
Disaster loans up to $500,000 are available to homeowners to repair or replace disaster-damaged or destroyed real estate. Homeowners and renters are eligible for up to $100,000 to repair or replace disaster-damaged or destroyed personal property. Businesses and private nonprofit organizations of any size may borrow up to $2 million to repair or replace disaster-damaged or destroyed real estate, machinery and equipment, inventory, and other business assets.
For small businesses, small agricultural cooperatives, small businesses engaged in aquaculture, and most private nonprofit organizations, the SBA offers EIDL to help meet working capital needs caused by the disaster. EIDL assistance is available regardless of whether the business suffered any physical property damage.
Interest rates are as low as 4 percent for businesses, 3.25 percent for nonprofit organizations, and 2.813 percent for homeowners and renters, with terms up to 30 years. Interest does not begin to accrue and monthly payments are not due until 12 months from the date of the initial disbursement. Loan amounts and terms are set by the SBA and are based on each applicant’s financial condition.
Applicants may be eligible for a loan amount increase of up to 20 percent of their physical damages, as verified by the SBA, for mitigation purposes. Eligible mitigation improvements may include a safe room or storm shelter, sump pump, French drain, or retaining wall to help protect property and occupants from future disasters.
Survivors can apply for both FEMA grants and SBA loans at the same time to help them fully recover. FEMA grants are intended to cover necessary expenses and serious needs not paid by insurance or other sources. The SBA disaster loan program is designed for long-term recovery to get survivors back to their pre-disaster condition. There is no need to wait on a decision for a FEMA grant; apply online and receive additional disaster assistance information at https://sba.gov/disaster.
Applicants may also call the SBA’s Customer Service Center at (800) 659-2955 or send an email to disastercustomerservice@sba.gov for more information on SBA disaster assistance. The filing deadline to return applications for physical property damage is November 27, 2024. The deadline to return economic injury applications is June 30, 2025.
For additional details, view the SBA Fact Sheet for Disaster Loans at https://bit.ly/sba-disaster-fact-sheet.
More on SBA Loans Available For Storm Victims In Area Counties available on WHKY.
