Disaster recovery loans from the U.S. Small Business Administration (SBA) are now available to Los Angeles County businesses who suffered physical damage or economic injury due to the civil unrest incidents that began on May 26, 2020.
Businesses of all sizes and private nonprofit organizations may borrow up to $2 million to repair or replace damaged or destroyed real estate, machinery and equipment, inventory and other business assets. SBA low interest loans can also help businesses with the cost of improvements to protect, prevent or minimize the same type of disaster damage from occurring in the future.
There are two important deadlines to apply for assistance from SBA. Business owners must file an application by Aug. 17, 2020 for property damage applications and by March 17, 2021 for economic injury applications. There are several ways to apply:
- Complete an application online at sba.gov.
- Call SBA’s Customer Service Center at (800) 659-2955 or email email@example.com for more information on SBA disaster assistance.
- Individuals who are deaf or hard‑of‑hearing may call (800) 877-8339.
The SBA is also offering assistance through their Virtual Disaster Loan Outreach Center at FOCWAssistance@sba.gov. SBA disaster loans are only available for damages and losses due to the civil unrest that began May 26, 2020, and not for COVID-19 related losses.
If you need assistance with your application, visit the Los Angeles County Disaster Help Center at lacountyhelpcenter.org. Interested applicants who do not have access to the internet, have limited computer proficiency or speak languages other than English may contact L.A. County’s Disaster Help Center at (833) 238-4450. Multilingual business counselors are standing by to assist business owners in completing applications Monday through Friday, from 8:30 a.m. to 5:30 p.m.
Economic injury disaster loans help meet working capital needs such as purchasing inventory, supplies and covering day-to-day expenses like rent and payroll. Economic injury assistance is available regardless of whether the business has suffered any property damage or not.
Interest rates can be as low as 3 percent for businesses, and 2.75 percent for private nonprofit organizations with terms up to 30 years. Loan amounts and terms are set by SBA and are based on each applicant’s financial condition.