SBA Offers Disaster Assistance to California Small Businesses Economically Impacted by the February Severe Storms and Flooding

SACRAMENTO, Calif., April 19 -- The Small Business Administration's Office of Disaster Assistance issued the following news release:

The U.S. Small Business Administration is offering low-interest federal disaster loans for working capital to small businesses economically impacted by the severe storms and flooding that occurred Feb. 1-25, 2017, SBA Administrator Linda McMahon announced today. SBA acted under its own authority to declare a disaster following a request received on April 14 from Gov. Edmund G. Brown, Jr.'s designated representative, Director Mark S. Ghilarducci of the Governor's Office of Emergency Services.

These low-interest federal disaster loans are available in Alpine, Amador, Calaveras, El Dorado, Kern, Madera, Mariposa, Merced, Mono, Placer, Sacramento, San Luis Obispo, Santa Barbara, Stanislaus, Tuolumne and Ventura counties in California; and Douglas County in Nevada.

"SBA is strongly committed to providing the most effective and customer-focused response possible to assist California small businesses with federal disaster loans. We will be swift in our efforts to help these small businesses recover from the financial impacts of this disaster," said Administrator McMahon.

"Small, nonfarm businesses, small agricultural cooperatives, small businesses engaged in aquaculture and most private nonprofit organizations of any size may qualify for Economic Injury Disaster Loans of up to $2 million to help meet financial obligations and operating expenses which could have been met had the disaster not occurred," said acting Regional Administrator Robert Blaney of the U.S. Small Business Administration's Region IX Office.

"These loans may be used to pay fixed debts, payroll, accounts payable and other bills that can't be paid because of the disaster's impact. Disaster loans can provide vital economic assistance to small businesses to help overcome the temporary loss of revenue they are experiencing," Blaney added.

Eligibility is based on the financial impact of the disaster only and not on any actual property damage. These loans have an interest rate of 3.15 percent for small businesses and 2.5 percent for private nonprofit organizations with terms up to 30 years, and are restricted to small businesses without the financial ability to offset the adverse impact without hardship.

America's Small Business Development Center (SBDC) network is offering free, personalized counseling to help affected businesses in their recovery. Businesses may visit www.americassbdc.org to locate the nearest California SBDC office in their area.

Applicants may apply online using SBA's secure website at https://disasterloan.sba.gov/ela.

Disaster loan information and application forms are also available from SBA's Customer Service Center by calling (800) 659-2955 or emailing [email protected]. 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. 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 economic injury applications is Jan. 19, 2018.