In late September and early October, the state of Florida was ravaged by Hurricanes Helene and Milton. In the wake of their devastation, many businesses and residents are in need of loans to rebuild their livelihoods. With the window for eligibility for loans closing, the United States Small Business Administration (SBA) recently announced an extension to these deadlines.
According to a press release from the SBA on November 27, the updated timeframe for “Business Physical Disaster Loans” is now set for January 7, 2025. The “Economic Injury Disaster Loans (EIDL)” deadline has been pushed out to June 30 of next year as well.
That is not for all counties across the state, however. Both extensions are available to 31 different counties including Hernando, Pasco, and Hillsborough. 19 other Florida counties including Polk, Broward, and Miami-Dade are only eligible for the new deadline for economic injury. Several Georgia counties may also continue applying for the economic injury loan only.
If you are located in a disaster area, there are three types of loans you may be eligible for as stated by the SBA’s press release:
Business Physical Disaster – “Loans to businesses to repair or replace disaster-damaged property owned by the business, including 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 – “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 to homeowners or renters to repair or replace disaster-damaged real estate and personal property, including automobiles.”
Naturally, there are several limits and requirements for these loans beyond the county one lives in, which include:
A credit history that is acceptable to the SBA.
The ability to repay all loans.
Loan terms at a maximum of 30 years (or 7 for “a business with credit elsewhere”).
The maximum amount that a business or economic injury loan can reach is $2 million.
Home loans are limited to no more than $500,000 for repairs with another $100,000 allowed for the replacement of personal property.
Borrowers may be required to obtain specific insurance. There are several restrictions to the eligibility of a loan including the presence of insurance, the eligibility status of the property itself, and noncompliance.
If a disaster loss is unsured or otherwise uncompensated, the property may be coverable. Likewise, the SBA noted that secondary homes, recreational vehicles, and other such items could be eligible unless used for business purposes. Applicants who are noncompliant would be those who had not complied with prior SBA loan guidelines.
Once approved, individuals may be eligible for extra funds in preparation for future damages including the shoring up of retaining walls and other such measures. Property owners may also use their disaster loans to relocate elsewhere if they desire. Citizens looking to apply for disaster loans can submit them using the MySBA Loan Portal at https://lending.sba.gov.
