Small Business Administration Disaster Assistance for Hurricane Helene & Hurricane Milton

Over the last weeks following Hurricane Helene and Hurricane Milton, President Biden has approved disaster declarations in Florida, Georgia, North Carolina, South Carolina, Tennessee, and Virginia, enabling federal aid, including SBA’s disaster assistance loan programs, to assist state and local recovery efforts in the areas affected by the storm.

The Small Business Administration’s (SBA) disaster assistance loan programs offer low-interest loans to help businesses and homeowners recover from declared disasters. Small businesses, homeowners, renters and private nonprofit organizations who are located in a declared disaster area and meet other criteria depending on the type of loan may be eligible.

Disaster loans must broadly be used for:

Losses not covered by insurance or funding from the Federal Emergency Management Agency for both personal and business
Business operating expenses that could have been met had the disaster not occurred
The following SBA disaster loans are available to businesses impacted by Hurricane Helene:
Economic Injury Disaster Loans (EIDL): Funding to small businesses and nonprofits located in a declared disaster area which have suffered substantial economic injury, meaning the business is unable to meet financial obligations and pay its regular and necessary operating expenses. EIDL provides the necessary working capital to help small businesses impacted by a disaster survive until normal operations resume.
Business physical disaster loans: Loans up to $2 million to qualified businesses and nonprofit organizations to cover repairs and replacement of physical assets damaged in a declared disaster not fully covered by insurance. Loan proceeds may be used for the repair or replacement of real property, machinery, equipment, fixtures, inventory and leasehold improvements.
Home disaster loans: Loans up to $500,000 for homeowners and $100,000 for renters to repair or replace disaster-damaged real estate and personal property, including clothing, furniture, cars, and appliances.

Individuals must apply for physical damage loans by late November or early December and economic injury loans by late June or early July depending on the state.

It is worth noting that depending on the overall impact of Hurricane Helene and Hurricane Milton, Congress may need to appropriate more funding to the SBA disaster programs. Congressional funding to the SBA’s loan programs has been a point of disagreement among Republicans and Democrats in recent years. The continuing resolution signed last week included no new funds for the disaster programs, the SBA’s disaster loan program account is 99% obligated for FY 2025, and the EIDL program has only been granted $63 million in spending authority for FY 2025.

Meet The Author:

Katie Vlietstra

As Vice President for Government Relations and Public Affairs, I work to explain how actions on Capitol Hill can impact the self-employed. I love D.C. and have made my home in Capitol Hill, where I live with my husband and black Labrador, Coltrane. We love playing volleyball and softball on the National Mall.
More...

News