Businesses, homeowners, renters and non-profit organizations who suffered storm damage in Douglas and Pope Counties could now be eligible for financial assistance from the U.S. Small Business Administration (SBA).  Those same entities located in contiguous counties of Grant, Otter Tail, Stearns, Stevens and Todd counties are also eligible.

The SBA’s Disaster Declaration was issued on July 25 and was declared because of damage caused by severe thunderstorms and tornadoes that moved through the area from May 29 to May 30 of this year.  The disaster assistance available are low-interest disaster loans, stated by Sharon Gadbois, SBA Public Affairs Specialist.

Gadbois will be at the Pope County Committee of the Whole meeting tomorrow (Tuesday) at the board room at the Pope County Courthouse.  That meeting is scheduled to begin at 9 a.m.  She will be there to talk more about what types of loans are available, eligibility requirements, loan interest rates and terms.  She will also provide information on application deadlines and how to apply for the assistance.

Deadlines for applying for disaster assistance for physical damage to property is Sept. 23.  Those who suffered economic injury through loss of business or business interruption have until April 25, 2023 to apply, Gadbois said.

Loans available would be for homeowners, renters, businesses of all sizes and non-profit organizations and would include physical damage loans and Economic Injury Disaster Loans (EIDL).  

What Types of Disaster Loans are Available? 

•Business Physical Disaster Loans – Loans to businesses to repair or replace disaster-damaged property owned by the business, including, but not limited to real estate, inventories, supplies, machinery and equipment. Businesses of any size are eligible. Private, non-profit organizations such as charities, churches, private universities, etc., are also eligible. 

•Economic Injury Disaster Loans (EIDL) – Working capital loans to help small businesses, small agricultural cooperatives, small businesses engaged in aquaculture, and most private, non-profit organizations of all sizes meet their ordinary and necessary financial obligations that cannot be met as a direct result of the disaster. These loans are intended to assist through the disaster recovery period. 

•Home Disaster Loans – Loans to homeowners or renters to repair or replace disaster-damaged real estate and personal property, including automobiles. 

What are the Loan 

Amount Limits? 

•Business Loans – The law limits business loans to $2,000,000 for the repair or replacement of real estate, inventories, machinery, equipment and all other physical losses. Subject to this maximum, loan amounts cannot exceed the verified uninsured disaster loss. 

•Economic Injury Disaster Loans (EIDL) – The law limits EIDLs to $2,000,000 for alleviating economic injury caused by the disaster. The actual amount of each loan is limited to the economic injury determined by SBA, less business interruption insurance and other recoveries up to the administrative lending limit. EIDL assistance is available only to entities and their owners who cannot provide for their own recovery from non-government sources, as determined by the U.S. Small Business Administration. 

•Home Loans – SBA regulations limit home loans to $200,000 for the repair or replacement of real estate and $40,000 to repair or replace personal property. Subject to these maximums, loan amounts cannot exceed the verified uninsured disaster loss. 

What Restrictions are 

there on Loan Eligibility? 

•Uninsured Losses – Only uninsured or otherwise uncompensated disaster losses are eligible. Any insurance proceeds which are required to be applied against outstanding mortgages are not available to fund disaster repairs and do not reduce loan eligibility. However, any insurance proceeds voluntarily applied to any outstanding mortgages do reduce loan eligibility. 

•Ineligible Property – Secondary homes, personal pleasure boats, airplanes, recreational vehicles and similar property are not eligible, unless used for business purposes. Property such as antiques and collections are eligible only to the extent of their functional value. Amounts for landscaping, swimming pools, etc., are limited. 

•Noncompliance – Applicants who have not complied with the terms of previous SBA loans may not be eligible. This includes borrowers who did not maintain flood and/or hazard insurance on previous SBA loans. 

What if I Decide 

to Relocate? 

You may use your SBA disaster loan to relocate. If you are interested in relocation, an SBA case manager or loan officer can provide you with more details on your specific situation.

Additional information 

on how to apply

Applicants may apply online, receive additional disaster assistance information and download applications at https://disasterloanassistance.sba.gov/ela. Applicants may also call SBA’s Customer Service Center at (800) 659-2955 or email disastercustomerservice@sba.gov for more information on SBA disaster assistance. If you are deaf, hard of hearing or have a speech disability, please dial 7-1-1 to access telecommunications relay services. Completed applications should be mailed to U.S. Small Business Administration, Processing and Disbursement Center, 14925 Kingsport Road, Fort Worth, TX 76155.