Disaster loans available for storm damage in June

Staff Reports

Indiana businesses and residents affected by severe storms and flooding June 18 and 19 can apply for low-interest disaster loans from the U.S. Small Business Administration.

The disaster declaration covers Jefferson and Monroe counties and the adjacent counties of Jackson, Brown, Clark, Greene, Jennings, Lawrence, Morgan, Owen, Ripley, Scott and Switzerland in Indiana and Carroll and Trimble in Kentucky.

The SBA has opened two disaster loan outreach centers. The closest one to Jackson County is in the Monroe County Convention Center, 302 S. College St., Bloomington. Hours are 8 a.m. to 5 p.m. today through Friday when the center will close permanently.

The center may be reached at 800-659-2955 for assistance in completing loan applications. Requests for program information may be obtained by emailing [email protected].

The filing deadline to return applications for physical property damage is Sept. 7. The deadline to return economic injury applications is April 7, 2022.

Businesses and private nonprofit organizations may borrow up to $2 million to repair or replace disaster-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, the SBA offers economic injury disaster loans to help meet working capital needs caused by the disaster. That assistance is available regardless of whether the business suffered any physical property damage.

Loans up to $200,000 are available to homeowners to repair or replace damaged or destroyed real estate. Homeowners and renters are eligible for loans up to $40,000 to repair or replace damaged or destroyed personal property.

Applicants may be eligible for a loan amount increase up to 20% of their physical damages as verified by the SBA for mitigation purposes. Eligible mitigation improvements may include a safe room or storm shelter, sump pump, French drain or retaining wall to help protect property and occupants from future damage caused by a similar disaster.

Interest rates are as low as 2.88% for businesses, 2% for nonprofit organizations and 1.625% for homeowners and renters with terms up to 30 years. Loan amounts and terms are set by the SBA and are based on each applicant’s financial condition.

Applicants may apply online using the electronic loan application via SBA’s secure website at disasterloanassistance.sba.gov/ela/s.

Loan applications also can be downloaded at sba.gov/disaster.