The Small Business Administration will provide financial assistance to help Lynchburg businesses and homeowners impacted by the April 15th tornadoes. The SBA will open a Disaster Loan Outreach Center Saturday to answer questions and help fill out applications for low-interest federal loans. Businesses and private non-profit corporations may borrow up to $2 million to repair or replace storm damage. Homeowner loans go up to $200,000, and both homeowners and renters are eligible for loans up to $40,000 for damaged or destroyed personal property. This applies only to the City of Lynchburg.
NEWS RELEASE: Governor Ralph Northam announced today that Virginia’s request for financial assistance to aid citizens impacted by the April 15 tornadoes in the City of Lynchburg has been approved, making low-interest federal loans from the U.S. Small Business Administration (SBA) available to help residents and business owners rebuild from storm damage.
In the coming days, the SBA will open a Disaster Loan Outreach Center in Lynchburg to answer questions about the disaster loan program and to help individuals complete their applications.
“Public safety officials and emergency managers at the state and local level have seen first-hand the devastation caused by these April storms,” said Brian Moran, Virginia Secretary of Public Safety and Homeland Security. “While there is nothing we can do to take away the hurt and interruption of lives and businesses due to these storms, we must pursue every avenue to assist. When I toured the region after the storms and spoke with those whose homes and business were destroyed and damaged, I knew it would be a long road to recovery. We appreciate SBA approving these funds to give the community a helping hand.”
Details about the Disaster Loan Outreach Center in the City of Lynchburg are below.
CITY OF LYNCHBURG DISASTER LOAN OUTREACH CENTER
Central Virginia Community College (CVCC)
Main Campus, Amherst Building, Room 2316
3506 Wards Road
Lynchburg, Virginia 24502
Saturday, June 2
10:00 AM to 2:00 PM
Sunday, June 3
Monday, June 4 – Thursday, June 7
8:00 AM to 5:00 PM
Friday, June 8
8:00 AM to 4:00 PM
Through the SBA program, businesses and private nonprofit organizations may borrow up to $2 million to repair or replace disaster damaged or destroyed real estate, machinery and equipment, inventory and other business assets.
For small businesses, small agricultural cooperatives, small businesses engaged in aquaculture and most private nonprofit organizations, the SBA offers Economic Injury Disaster Loans to help meet working capital needs caused by the disaster. Economic Injury Disaster Loan assistance is available regardless of whether the business suffered any physical property damage.
Loans up to $200,000 are available to homeowners to repair or replace damaged or destroyed real estate. Homeowners and renters are eligible for loans up to $40,000 to repair or replace damaged or destroyed personal property.
Applicants may be eligible for a loan amount increase up to 20 percent of their physical damages, as verified by the SBA for mitigation purposes. Eligible mitigation improvements may include a safe room or storm shelter to help protect property and occupants from future damage caused by a similar disaster.
Interest rates are as low as 3.58 percent for businesses, 2.5 percent for nonprofit organizations, and 1.813 percent for homeowners and renters with terms up to 30 years. Loan amount and terms are set by the SBA and are based on each applicant’s financial condition.
Applicants may apply online using the Electronic Loan Application (ELA) via SBA’s secure website at DisasterLoan.sba.gov.
Businesses and individuals may also obtain information and loan applications by calling the SBA’s Customer Service Center at 1-800-659-2955 (1-800-877-8339 for the deaf and hard-of-hearing), or by emailing email@example.com. Loan applications can also be downloaded at www.sba.gov.
Completed applications should be returned to the center or mailed to: U.S. Small Business Administration, Processing and Disbursement Center, 14925 Kingsport Road, Fort Worth, Texas 76155.
The filing deadline to return applications for physical property damage is July 30, 2018. The deadline to return economic injury applications is March 4, 2019.