Today is deadline to apply for SBA disaster loans for property damage from December storms
Today – Tuesday, March 29, 2022 – is the deadline to apply for US Small Business Administration federal disaster loans for physical damage sustained during the December 2021 “kona low” severe weather, flooding, and landslides.
Residents and businesses in the City and County of Honolulu, Maui County (including Molokaʻi and Lānaʻi), and contiguous County of Kalawao who wish to apply for a personal property or physical disaster loan must do so no later than 6 p.m. HST on March 29. The Hawai ‘i Emergency Management Agency encourages all eligible prospective borrowers to apply before the deadline.
The SBA has already approved more than $550,000 in low-interest loans to help residents repair damage and continue recovery from the storm.
The HI-EMA hosted a virtual information briefing (posted above) last month to answer questions about the loans and the process. The session included a presentation by the SBA as well as input from the City and County of Honolulu Department of Emergency Management and the Maui County Emergency Management Agency.
The SBA authorized the low-interest loans for businesses and residents on several islands that were affected by severe storms, flooding and landslides as a result of the “Kona low” incident that impacted Hawai‘i Dec. 5-10, 2021.
The programs that were approved make available disaster loans of:
- Up to $200,000 for homeowners to repair or replace damaged or destroyed real estate, and
- Up to $40,000 for homeowners or renters to repair or replace personal property that was damaged or destroyed.
The loans have terms of up to 30 years at interest rates as low as 1.438%.
Businesses 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. The up-to-30-year loans have interest rates as low as 2.83% for businesses and 1.875% for private nonprofit organizations.
SBA can also lend additional funds to businesses and homeowners to help pay for improvements to protect, prevent, or minimize the same type of disaster damage from occurring in the future.
Small businesses (including aquaculture), small agricultural cooperatives, and most private nonprofits may be eligible for Economic Injury Disaster Loans to help meet working capital needs caused by the disaster, even if the business did not suffer property damage. These loans have a later deadline; applications for Economic Injury Disaster Loans are due Oct. 28, 2022.
Loan applications for personal property, physical damage, and economic injury can be downloaded here. To assist with loan applications while protecting against the risk of COVID-19, SBA have opened a Virtual Business Recovery Center and Virtual Disaster Loan Outreach Center. Customer service representatives can answer questions, explain the application process, and help with filing an online loan application.
The centers are operating Monday through Friday from 2 a.m. to 2 p.m. in Hawaiʻi Standard Time and can be reached at 800-659-2955 or [email protected].