Severe Weather Lurking? Know That Federal Aid Can Help

Although extreme cold is lurking in the MidWest, small businesses can rest assure severe weather damage won’t put them out of business. 

One vital resource to know about is the Physical Disaster Loan offered by the U.S. Small Business Administration. If your business is in a declared “disaster area”, you can apply for this type of financial assistance. According to the SBA, loans can be used for the repair or replacement of a variety of items, including your property, tools and machines, inventory and other goods. 

In a press release, the SBA explained that businesses in affected areas are encouraged to look into these loans. Once extreme weather hits, submitting an application as soon as you can is encouraged. The SBA noted that postponing this step might prevent SMBs from receiving aid as soon as possible.

“Waiting to file an SBA application could cause unnecessary delays in receiving disaster assistance, and survivors may miss the application deadline,” Frank Skaggs, director of SBA Field Operations Center East, said in a statement. “Returning the loan application is an essential part of the disaster recovery process.”

According to the SBA, interest rates vary depending on the person filing the application. While homeowners and renters get the lowest rates, business owners can set terms of up to 30 years for a rate as low as 4 percent. 

No matter your situation following severe weather, as a small business owner its important to remember that there are resources out there that can minimize the financial effects of a natural disaster.