Those affected by the severe winter storms, which caused massive flooding across the state from Dec. 27, 2022, to Jan. 31, 2023, may need more financial assistance for long-term recovery than FEMA can provide. A disaster loan from the U.S. Small Business Administration (SBA) may go a long way in helping to recover from the storms.
Residents and homeowners in the designated counties of Alameda, Calaveras, Contra Costa, Mendocino, Merced, Monterey, Sacramento, San Joaquin, San Luis Obispo, San Mateo, Santa Barbara, Santa Cruz and Ventura may be eligible to apply for an SBA disaster assistance loan.
However, those affected by the winter storms may be reluctant to apply for a loan. But before rejecting the idea of applying, survivors should consider the following:
- You do not have to accept a loan if you are approved.
- If FEMA refers you to SBA, you must apply with SBA before you can be considered for certain FEMA grant money, such as reimbursement for damaged personal property, transportation assistance and Group Flood Insurance Policy (GFIP).
- SBA is offering zero interest on new disaster loans. Homeowners and business owners approved for these loans have up to one year from the date of the loan to begin making payments.
- The extended deferment to 12 months is automatic and borrowers do not need to take any additional action. There is no prepayment penalty and borrowers can begin making loan payments during the deferment period if they choose.
- There is no cost to apply for an SBA low disaster loan.
- Waiting for an insurance settlement? Your policy may not cover all the replacement, repair and rebuilding costs needed. A disaster loan could help cover the difference. You can then use your insurance proceeds to reduce or pay off the SBA loan balance.
- Businesses of all sizes and private nonprofit organizations may borrow up to $2 million to repair or replace 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 of any size, SBA offers Economic Injury Disaster Loans to help meet working capital needs
- Homeowners may be eligible for a disaster loan up to $200,000 for primary residence structural repairs or rebuilding. SBA may also be able to help homeowners and renters with up to $40,000 to replace important personal property, including automobiles damaged or destroyed in the disaster.
- In addition, you may be eligible for a loan amount increase of up to 20 percent of the physical damage to make your home safer. Eligible work could include building retaining walls, elevating or retrofitting the flood prone structure or relocating utilities to protect against future damage.
- To apply online, receive additional disaster assistance information and download applications, go to https://disasterloanassistance.sba.gov/. You may also call SBA’s Customer Service Center at 800-659-2955 or email disastercustomerservice@sba.gov for more information. For people who are deaf, hard of hearing, or have a speech disability, dial 711 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.
- The SBA deadline to apply for property damage is March 16, 2023. The deadline to apply for economic injury is Oct. 16, 2023.
- SBA has opened two Business Recovery Centers to assist business owners with their loan applications. Homeowners and renters may also visit the centers. No appointment is necessary.
| SANTA CRUZ COUNTY
Business Recovery Center Capitola City Hall Community Room (Located on the First Floor) 420 Capitola Avenue Capitola, CA 95010 Mondays – Fridays, 8 a.m. - 5 p.m. *Public parking is located behind City Hall | SACRAMENTO COUNTY
Business Recovery Center The Hub 9072 Elk Grove Boulevard Elk Grove, CA 95624 Mondays – Fridays, 8 a.m. – 5 p.m. |
To apply for FEMA disaster assistance:
- Go to www.DisasterAssistance.gov, download the FEMA mobile app or call the FEMA Helpline at 800-621-3362. If you use video relay service (VRS), captioned telephone service or others, give FEMA your number for that service. Helpline operators are available from 7 a.m. to 11 p.m. daily. Press 2 for Spanish. Press 3 for an interpreter who speaks your language. For an accessible video on how to apply, go to youtube.com/watch?v=LU7wzRjByhI.
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