Where were you when hurricane Irma hit our shores? When it comes to natural disasters, people tend to come together to help out those who suffer losses. That said, everything we hear about has to do with home damage. But what happens if it’s your business that needs help?
While it may be tempting to contact FEMA to apply for a grant similar to the ones awarded to homeowners, know that you won’t have any luck with that. The only type of federal assistance available for business losses are through loans provided by the Small Business Administration. You read that right. You’ve suffered losses, and now you get to borrow money to fix those loses, and pay interest on it. How exciting, isn’t it?
How does it work?
You’ll need to figure out whether your business is located in a disaster zone area. You can check by clicking here. If the answer is yes, then you may proceed to apply online. Don’t wait until the last minute to do so, because you’ll probably be required to make a compilation of documents, and that might take some time. Once you create that account, you’ll be able to use that same log in information to get a status on your application. There is a cap of $2 million for businesses. Interest rates are fixed, and will not exceed 8% of the loan amount.
What if I suffered damages in addition to physical damage?
If your building was flooded, or a portion of the structure was damaged, you would need to apply for a business physical disaster loan. If in addition to those damages, you suffered financial losses due to an inability to keep up with your business expenses, you can apply for an economic injury disaster loan.
How long will it take?
The SBA will have an answer for you within two to three weeks.
If both your home and your business are in flood zones, you’re going to have to deal with the bureaucracy associated with all government agencies. But if by any chance your home keeps remaining bone dry after natural disasters, you might want to ease your financial burdens by evaluating whether you live in a high risk flood zone. National Flood Experts will do that evaluation for free. Give us a call and see if we can help you save money. You have nothing to lose.