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SBA Disaster Assistance

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The U.S. Small Business Administration staff is on ground to help survivors recover from hurricane Helene. The agency’s available disaster relief programs are eligible to homeowners, renters, and businesses. Residents in the Tennessee counties of: Carter, Cocke, Greene, Hamblen, Hawkins, Johnson, Unicoi and Washington; for economic injury only in the contiguous Tennessee counties of: Grainger, Hancock, Jefferson, Sevier and Sullivan; for economic injury only in the contiguous North Carolina counties of: Ashe, Avery, Haywood, Madison, Mitchell, Watauga and Yancey; and for economic injury only in the contiguous Virginia counties of: Grayson, Scott and Washington.

 

Home Disaster Loans – Loans to homeowners or renters to repair or replace disaster-damaged real estate and personal

property, including automobiles.

    • Homeowners maximum amount is $500,000
    • Renters maximum amount is $100,000
    • Interest rates are as low as 2.813%

Business Physical Disaster Loans – 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.

  • Maximum amount is $2,000,000
  • Interest rates are as low as 4%
  • Non-profits interest rates are as low as 3.250%

Economic Injury Disaster Loans (EIDL) – 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.

  • Only for Businesses and Non-profits
  • Maximum amounts are for physical and EIDL combined

Mitigation is available. Approved loans can be increased up to 20% of the verified physical loss for mitigation measures (not to exceed $200,000 for Home and the Legislative Limit for Businesses). Mitigation funds are to cover the cost of improvements designed to protect property and occupants against future damage. Examples of improvements include retaining walls, seawalls, sump pumps, safe room, etc.

Funds can be used for relocation. Relocation occurs anytime the applicant either elects to or is required to move from the damaged home or business to any other location.

By regulation, we cannot provide assistance to any who wishes to relocate voluntarily outside the business area where the disaster occurred. However, we may provide assistance if a relocation is other than voluntary. Rebuilding the damaged structure at another location on the same parcel of real estate is not considered relocation unless the damaged structure was located in a Special flood hazard area (SFHA) and is being rebuilt in a non SFHA on the same parcel.

SBA is still accepting applications, despite the exhausted funds.  Once Congress appropriates funds, SBA will resume processing applications in the order they were received. Applicants should not wait to apply. This does not impact disaster loans that have already been offered. Borrowers who already have a loan offer may advance their loan to disbursement, and borrowers who already have existing loans may continue with servicing actions and loan modifications. The physical damage deadline is December 2, 2024, and the EIDL deadline is July 2, 2025.

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