SBA to Open 2 Disaster Offices Tomorrow for California Wildfires — Have Your Customers Get Appointments Scheduled ASAP for Uninsured Losses

January 13, 2025

Bob Coleman
Founder & Publisher

SBA to Open 2 Disaster Offices Tomorrow for California Wildfires — Have Your Customers Get Appointments Scheduled ASAP for Uninsured Losses

As a trusted advisor, you can begin to guide them through the process. The first thing I would recommend is for them to go online and make an appointment to visit one of the two Southern California disaster offices opening tomorrow. Appointments can be made at appointment.sba.gov. The earlier they can submit their application, the better.

I encourage you to have your customers make advanced appointments. Here’s a recap of the SBA disaster program for businesses physical losses.

Eligibility:

Businesses of any size and most private non-profit organizations may apply to SBA for a loan to recover after a disaster.

Loan Amount:

Up to $2 million to cover disaster losses not fully covered by insurance or other sources.

Use of Proceeds:

Loan proceeds may be used for the repair or replacement of the following:

– Real property

– Machinery

– Equipment

– Fixtures

– Inventory

– Leasehold improvements

Terms:

– First payment deferred for 12 months

– No interest accrual for the first 12 months

– For applicants unable to obtain credit elsewhere: The interest rate will not exceed 4%

– For applicants who can obtain credit elsewhere: The interest rate will not exceed 8%

– SBA will determine whether an applicant can obtain credit elsewhere

Maturity:

– Up to 30 years, depending on ability to repay the loan

– No pre-payment penalty or fees

Collateral Requirements:

– Collateral is required to the extent possible for physical damage loans over $50,000

– Real estate is the preferred collateral

– Loans of $200,000 or less will not require the owner of the business to use their primary residence as collateral if it is determined the owner has other assets of equal quality and of a value equal to or greater than the amount of the loan

Wildfire Mitigation Damage:

Borrowers may borrow 20% greater of real estate value with improvements that help reduce the risk of future property damage. For wildfire mitigation:

– Install a Class A fire-rated roof

– Install 1/8″ mesh screening over all vents to keep embers out of eaves and vents

– Install non-combustible gutters, fences, and gates

– Remove roof and gutter debris that can be ignited by airborne embers

– Replace single-pane windows with dual- or multi-pane tempered glass windows

Source: SBA Press Release