Miami News

Low-interest loans to provode aid after flash flooding in May

The U.S. Small Business Administration is now offering federal loans to businesses and homeowners for any damages related to the Flash Flooding natural disaster declared in May.

After the flash flooding that occurred in late May, Governor Ron DeSantis called on the U.S. Small Business Administration (SBA) to make a disaster declaration to support Florida residents. SBA Administrator Jovita Carranza has now announced the new low-interest loans that the organization will be offering. 

Loans are available to all businesses and nonprofits for physical damage to real estate, inventory, equipment, and other things. Small businesses and nonprofits can also apply for loans to cover working capital. For the latter type of loan, the applicant does not need to have any physical damages to apply. 

For businesses, interest rates can be as low as 3 percent, and nonprofits can have an interest rate as low as 2.75 percent. The maximum loan for these establishments is $2 million. 

Homeowners can also apply for loans of up to $200,000 for primary residences and up to $40,000 for personal property loans. For home renters or owners, interest rates can be as low as 1.25 percent. 

All SBA loans have a repayment term of up to 30 years. Applicants from businesses or homeowners can receive a mitigation of up to 20 percent of SBA’s verified physical damage amount. 

Small business loan flash flood

The SBA notes that anyone planning to apply for loans should confirm with administrators of any other grant or assistance programs from other organizations or agencies to determine how the approval of a disaster loan could affect their eligibility.

Applicants can visit the Disaster Loan Assistance website to begin the application process or call (571)-422-1925 or (571)-422-6016 for one-on-one assistance. These call lines are open from Monday through Friday from 8 a.m. to 5 p.m. 

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