REPS. THOMPSON, GARAMENDI ANNOUNCE LOW-INTEREST SBA LOANS TO HELP BUSINESS OWNERS AND HOMEOWNERS RECOVER FROM THE CLAYTON FIRE

Washington, D.C. – (RealEstateRama) — U.S. Reps. Mike Thompson (CA-05) and John Garamendi (CA-03) today announced that low-interest Small Business Administration (SBA) loans have been made available to business owners and homeowners impacted by the Clayton Fire. While there are no official estimates as to how many businesses and homeowners are eligible to receive these loans, we do know that the owners of the 189 homes and 8 commercial structures that were destroyed may be eligible to receive these loans should they choose to apply and meet SBA criteria. In some situations, renters may also be eligible to receive loans for personal property damages.

“The low-interest loans made available by the SBA will help our business owners and our homeowners repair damages to their properties so that our businesses can reopen and folks can get back into their homes,” said Thompson.  “This is an important step in our recovery from the Clayton Fire and I commend the SBA for their swift action to help our community get back on its feet.”

“The economic effects of a wildfire linger long after a blaze is put out,” said Garamendi. “Smart programs like low-interest SBA loans will help communities affected by the Clayton fire get back to business as usual much faster, and that’s a win-win for everyone.”

Businesses and nonprofit organizations may borrow up to $2 million to repair or replace damaged or destroyed real estate, machinery and equipment, inventory, and other business assets. SBA can also lend additional funds to businesses and homeowners to help with the cost of improvements to protect, prevent or minimize the same type of disaster damage from occurring in the future.

For small businesses, small agricultural cooperatives, small businesses engaged in aquaculture, and most private nonprofit organizations of any size, SBA offers Economic Injury Disaster Loans (EIDLs) to help meet working capital needs caused by the disaster. EIDL assistance is available to businesses regardless of any property damage.

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

Interest rates can be as low as 4 percent for businesses, 2.625 percent for nonprofit organizations and 1.563 percent for homeowners. 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 (ELA) via SBA’s secure website at:https://disasterloan.sba.gov/ela(link is external)

Disaster loan information and application forms are also available from SBA’s Customer Service Center by calling (800) 659-2955 or emailing disastercustomerservice (at) sba (dot) gov. Individuals who are deaf or hard of hearing may call (800) 877-8339.

For more disaster assistance information or to download applications, visit https://www.sba.gov/disaster(link is external). Completed applications should be mailed to U.S. Small Business Administration, Processing and Disbursement Center, 14925 Kingsport Road, Fort Worth, TX  76155.

The filing deadline to return applications for property damage is Nov. 7, 2016. The deadline to return economic injury applications is June 6, 2017.

Representatives from the SBA will be available to answer questions and assist applicants at the Disaster Loan Outreach Center, located at the Lower Lake Historic Schoolhouse Museum, beginning on Thursday, September 8th. Representatives will be on hand Tuesdays – Saturdays, 8:30 a.m. – 5:30 p.m.