ORLANDO, Fla. – Hurricane season may be over, but its impact lingers for countless residents and business owners across Florida.
To aid in recovery, the federal government has extended the deadline for Small Business Administration (SBA) disaster loans to Jan. 7.
Rick Corrales of the SBA emphasized the importance of applying, noting the availability of funds for those in need: “We want people to apply so they can take advantage of this money that’s there for them.”
These low-interest loans are designed to help individuals and businesses recover from the devastation caused by Hurricanes Helene and Milton. Corrales explained that SBA loans offer favorable terms compared to traditional banks.
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“It’s better than a bank, and our interest rates are a lot less,” he said. “The great thing too is for the first 12 months, it’s deferred payment at 0%.”
SBA loans can cover a wide range of needs for homeowners, renters, and businesses, including repairs, replacing damaged property, and restoring business operations.
Corrales outlined the criteria for eligibility: “Be in a disaster area, that’s number one. Other than that, it’s very specific to the person based on their financials.”
Interest rates for these loans start at 2.8% for homeowners and renters, and 4% for businesses. Coverage also includes personal property, like vehicles, as well.
“The real estate piece, we can go up to $500,000,” Corrales said. “For personal property, $100,000.”
Corrales explained some people even use the loans while waiting for insurance payouts then they pay off the loan when the insurance money comes through.
“We can even cover their deductible,” he said. “There’s a lot of opportunities, and they don’t have to take the full amount. SBA can offer you something, and you can take what you need. There is no pre-payment penalty either.”
The one caveat is that the SBA disaster loan program ran out of money in October, so all new loan offers are on hold until Congress approves more funding. All indications point to that happening sooner rather than later.
For more information, visit the SBA’s disaster loan assistance website or contact their hotline to begin your application.