The Secrets You Need To Learn About SBA Disaster Loans
SBA loans have been a useful tool for small businesses for a couple generations now, but not many entrepreneurs realize just how many programs and opportunities there are in the Administration’s lineup. That’s because every new presidential administration works on refining the approach of the SBA for the market at the time. Typically, that means expanding the range of loan products available or revising the qualifications to make them accessible to more companies that need them. It’s likely you already know about the very popular 504 and 7a programs, but did you know the SBA offers disaster loans?
How Disaster Loans Through the SBA Work
SBA disaster loans are designed to help the victims of disasters recover before their economic misfortune extends to the whole community. Because of that, they do have programs for victims who are not business owners themselves. These programs allow members of the community to get the resources they need to get on their feet again and to participate in the economic well-being of their home municipalities. You can apply for personal disaster loans if you have lost property due to a disaster, and your approval process will be about as long as those for businesses.
There are also two types of SBA loans for businesses that have been through a disaster. The first is built to provide you a path to recovery from physical damage caused due to events like fire, flood, or earthquake. They allow you to get the funds you need to rebuild and re-purchase equipment. The second loan is designed for those who are suffering economically from a disaster but have not lost physical goods or property and have not incurred damage to the same. Lastly, there is a program for loans to help companies with the expenses related to covering for a military reservist who has been called to active duty, too.
How Long Does Approval Take?
Depending on the size of the loan and the exact type of disaster loan, it could take as long as four weeks to get a determination and another week or so to receive funds if you’re approved. That’s much faster than the usual one to six months that other SBA loans require, and for borrowers seeking smaller loan amounts, approval in two or three weeks is possible, it’s just not guaranteed. If you’re looking for a way to get on your feet again and you’re wondering where you can get the resources to finance essential purchases, remember the SBA is built to help small businesses and local communities, and then check out the disaster loan program.