3 Things You Should Know About SBA Disaster Loans
If your company has been experiencing a significant financial downturn lately and you need funding to stay afloat or continue to cover your regular expenses, you may be wondering what your options are. While conventional bank loans may offer some relief, they’re not typically designed to aid in disastrous situations. The good news is, the government has recently allocated a significant amount of money to relief efforts, including boosts to SBA disaster loan programs. These Small Business Administration-backed loans can help pull your company through tough times like these. To learn more about how they work and why they could potentially help your company, read on.
1. There Are Different Types of Disaster Loans
No matter what industry you’re in, you may be able to find a loan tailored to your type of business. One type of disaster loan is aimed at homes and personal property, to help those who have been affected by natural disasters. Another option is the business physical disaster loan, which you can qualify for if your business lies within a declared disaster area and has sustained significant damage from an event like a flood or a hurricane. With loans of sometimes up to $2 million, you can replace damaged property and get back on your feet. Finally, if you employ military reservists that get called into active duty, you may be eligible for a military reservists economic injury loan to help cover your expenses.
2. Your Area Needs To Be Designated To Qualify
Although you may be affected by a disaster, you won’t be able to qualify for SBA disaster loans unless your area has been officially labeled as a designated disaster area. This information should be easily searchable on the online SBA database, and can cover areas affected by tornadoes, fire, flooding, disease and more.
3. You’ll Need Documentation To Apply
If your area qualifies for assistance, you’ll need to register with the Federal Emergency Management Agency to get a registration number. Once you have this number, you can apply with a portfolio of required information. Depending on your situation, these documents could include insurance information, lease information, monthly expenses, social security numbers and more.
When the economy takes a downturn and consumer spending declines, many small businesses may have a hard time making ends meet and covering regular expenses, let alone planning for growth or expansion. If you’ve recently been hit by hard financial times and need funding to get through them, consider applying to a recently-expanded SBA disaster loan. It could just be the lifesaver your company needs.
