San Mateo County Eligible for Disaster Loan Assistance

Posted on by

(The following is a message from the Redwood City Improvement Association.)

We are living through a time in history that will be taught to kids for years to come. As we navigate day by day, we hope you find comfort that we are all in this together. We can utilize this time of sheltering in place to reflect and support those who need it most.

To help support the hard-working people in the area, the U.S. Small Business Administration (SBA) has declared San Mateo County eligible for Disaster Loan Assistance to help alleviate economic injury caused by the Coronavirus (COVID-19).

The three-step disaster loan process provides low-interest, long-term disaster loans to businesses of all sizes, private non-profit organizations, homeowners and renters.

  • Step 1: Apply for the Loan
  • Step 2: Property Verified and Loan Processing Decision Made
  • Step 3: Loan Closed and Funds Disbursed

WHAT CAN I USE THE LOAN FOR?
The 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.

WHAT IS THE INTEREST RATE?
The interest rate is 3.75 percent for small businesses without credit available elsewhere; businesses with credit available elsewhere are not eligible. The interest rate for non-profits is 2.75 percent.

SBA offers loans with long-term repayments in order to keep payments affordable, up to a maximum of 30 years. Terms are determined on a case-by-case basis, based upon each borrower’s ability to repay.

IS THERE A MAXIMUM?
Federal law limits these to $2,000,000 maximum for alleviating economic injury caused by the disaster, and the actual amount of each loan is limited to the economic injury determined by SBA, less business interruption insurance and other recoveries up to the administrative lending limit. SBA also considers potential contributions that are available from the business and/or its owner(s) or affiliates.

HOW DO I APPLY?
To apply for an Economic Injury Disaster Loans, click on “Apply Online” and create an account and password. Then submit your application. An explanation of SBA disaster application loan process is here. The application requires submitting various forms, copies of which are available here.

For additional information, please contact the SBA disaster assistance customer service center at 1-800-659-2955 (TTY: 1-800-877-8339) or e-mail or visit www.sba.gov/disaster.