Director Tanya N. Garfield of the U.S. Small Business Administration’s Disaster Field Operations Center-West has reminded California private nonprofit organizations of the Nov. 23 deadline to apply for an SBA federal disaster loan for property damage caused by wildfires that began July 14. Private nonprofits that provide essential services of a governmental nature are eligible for assistance.
According to Garfield, eligible private nonprofits of any size may apply for SBA federal disaster loans of up to $2 million to repair or replace damaged or destroyed real estate, machinery and equipment, inventory and other business assets. SBA can also lend additional funds to help with the cost of making improvements that protect, prevent or minimize the same type of disaster damage from occurring in the future.
In addition, SBA offers Economic Injury Disaster Loans to help eligible private nonprofits meet working capital needs caused by 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 private nonprofit suffered any property damage. Private nonprofits have until June 24, 2022, to apply for an SBA Economic Injury Disaster Loan.
These low-interest federal disaster loans are available in Lassen, Nevada, Placer, Plumas and Trinity counties.
The interest rate is 2 percent with terms up to 30 years. Loan amounts and terms are set by SBA and based on each applicant’s financial condition.
Applicants may apply online, receive additional disaster assistance information and download applications at https://disasterloanassistance.sba.gov/. Applicants may also call SBA’s Customer Service Center at 800-659-2955 or email firstname.lastname@example.org for more information on SBA disaster assistance. Individuals who are deaf or hard of hearing may call 800-877-8339. Completed applications should be mailed to U.S. Small Business Administration, Processing and Disbursement Center, 14925 Kingsport Road, Fort Worth, TX 76155.
The economic impact of the pandemic is improving and the holidays are coming! If you’re in need of affordable funding, a traditional low-cost SBA 7(a) loan may help you transition back into full operations. Although the SBA 7(a) loan application process may take longer than others, the good news is the low-cost and flexibility of these types of loans. Proceeds can be used for working capital or debt refinance.
And now, these loans are even more affordable. The Small Business Administration announced there will be no guarantee fee for SBA loans of $350,000 or less through Jan. 1. Normally, this 2.25% fee is taken off the proceeds you receive when your loan funds. That can mean up to $7,875 more in loan proceeds for your business when you receive a $350,000 loan.
SmartBiz also offers short-term Bank Term loans with interest rates starting as low as 6.99%. These fixed rate loans are available from $30,000 to $500,000 with terms of 2 to 5 years. The intuitive application and team of friendly financial professionals will help guide you through the process.