In the aftermath of Hurricane Florence, the U.S. Small Business Administration (SBA) is offering several programs to help small businesses and farmers recover from storm-related impacts.
 
SBA disaster assistance business loans offer businesses and private non-profit organizations up to $2 million to repair or replace disaster-damaged or -destroyed real estate, machinery and equipment, inventory and other business assets, according to a letter from Dorris Evans, a spokeswoman for the SBA's Office of Disaster Assistance.
 
"For small businesses, small agricultural cooperatives, [and] small businesses engaged in aquaculture, the SBA offers the Economic Injury Disaster Loans to help meet working capital needs caused by Hurricane Florence. Economic Injury Disaster Loans are available regardless of whether the business suffered any physical property damage," Evans' letter states.
 
Interest rates on these loans are low, according to Evans: as low as 2.5 percent for nonprofits and 3.675 percent for disaster assistance business loans and economic injury loans. Terms can be as long as 30 years.
 
"Loan amounts and terms are set by the SBA and are based on each applicant’s financial condition," Evans stated in the letter.
 
Last week, the SBA announced it will offer deferments of up to nine months on SBA-serviced loans held by eligible residents, businesses and private nonprofits of counties declared a federal disaster area after Hurricane Florence. Brunswick, New Hanover and Pender counties have received that declaration.
 
Both principal and interest payments can be deferred, but interest will continue to accrue, the Sept. 28 news release stated, adding, "The SBA will evaluate each request individually, and may grant the deferment when the borrower can show the need for relief based on the additional financial adversity caused by Hurricane Florence."
 
The SBA loans eligible for such deferment are 7(a) Loans, 504 Loans, Community Advantage Loans, Microloans and SBA disaster loans for homeowners, renters, businesses of all sizes and private nonprofit organizations, according to the release.
 
To be eligible for deferment, a loan must have been in "regular servicing" status as of Sept. 13, 2018.
 
To request a deferment on non-disaster loans, borrowers should contact their participating SBA lender or loan servicing center. Existing disaster loan borrowers should contact the Birmingham Disaster Loan Servicing Center at 800-736-6048, or by email at [email protected].
 
More information on applying for a SBA disaster-related loan is available at the newly established SBA Business Disaster Recover Center housed at the Wilmington Chamber of Commerce, 1 Estelle Lee Place in Wilmington. The BRC is open 8 a.m.-5 p.m. Monday-Saturday.
 
Another loan option for small businesses recovering from Hurricane Florence is an SBA Express Bridge Loan.
 
"These loans are available via SBA Express Lenders to help their current small business customers impacted by the hurricane.  The loan limit is $25,000," the release stated.