IOWA DERECHO 2020

SBA disaster loans available for Linn County businesses, individuals with storm damage

Federal loans cover property damage costs up to $2 million for businesses, $200,000 for individuals

Gov. Kim Reynolds (center) reacts to seeing the damage and reconstruction efforts at Cafe Saint Pio during a tour of sma
Gov. Kim Reynolds (center) reacts to seeing the damage and reconstruction efforts at Cafe Saint Pio during a tour of small businesses in the Czech Village affected by the Aug. 10 derecho storm in Cedar Rapids on Tuesday, Aug. 25, 2020. (Andy Abeyta/The Gazette)

Low-interest loans are available for businesses, homeowners and renters dealing with storm damage through the U.S. Small Business Administration and Federal Emergency Response Agency.

Individuals can borrow up to $40,000 to replace personal property and up to $200,000 for damage to their homes.

For businesses, the loans cover up to $2 million in damage to real estate, equipment or inventory. Small businesses and private nonprofits “suffering adverse financial impacts of the disaster” can also receive up to $2 million for general expenses “until normal operations resume.”

Interest rates vary depending on whether someone has enough funds or borrowing ability elsewhere. An individual without would pay a 1.188 percent interest rate without other credit available or 2.375 percent with other credit available.

Businesses would pay 3 percent interest if credit is not available elsewhere or 6 percent if they have other options. Nonprofits pay a 2.75 percent interest rate regardless of other credit options.

The deadline for applications is Oct. 19. The application is available at disasterassistance.gov, the FEMA mobile app or via phone at 800-621-3362.

If the loan is not approved, the SBA often refers individuals to FEMA’s Other Needs Assistance program.

Comments: (319) 398-8394; john.steppe@thegazette.com

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