SBA Relief Available to Guam Businesses, Private Nonprofits, Residents Affected by Super Typhoon Bavi

WASHINGTON - In response to a Presidential disaster declaration issued Oct. 7, the U.S. Small Business Administration announced the availability of low-interest federal disaster loans to Guam businesses, private nonprofits, and residents affected by Super Typhoon Bavi occurring July 4 - 12.

The disaster declaration covers Guam, which is eligible for both physical damage loans and Economic Injury Disaster Loans from SBA.

Businesses and nonprofits are eligible to apply for physical damage loans and may borrow up to $2 million to repair or replace disaster-damaged or destroyed real estate, machinery, and equipment, inventory, and other business assets.

Homeowners and renters are eligible to apply for home and personal property loans and may borrow up to $100,000 to replace or repair personal property, such as clothing, furniture, cars, and appliances. Homeowners may apply for up to $500,000 to replace or repair their primary residence.

Applicants may also be eligible for a loan increase of up to 20% of their verified physical damage, for mitigation purposes. Eligible mitigation improvements may include strengthening structures to protect against high wind damage, upgrading to wind rated garage doors, installing a safe room or storm shelter, elevating flood prone structures, adding a sump pump, or French drains to help reduce damage from future storms and flooding.

The SBA's Economic Injury Disaster Loan program is available to eligible small businesses, small agricultural cooperatives, and private nonprofits - including faith-based organizations -impacted by financial losses directly related to this disaster. The SBA is unable to provide disaster loans to agricultural producers, farmers, or ranchers, except for aquaculture enterprises.

Economic Injury Disaster Loans are for working capital needs caused by the disaster and are available even if the business or private nonprofit did not suffer any physical damage. They may be used to pay fixed debts, payroll, accounts payable, and other bills which could not be paid due to the disaster.

"A presidential disaster declaration opens the door to SBA assistance at a time when families and businesses are facing difficult decisions," said Chris Stallings, Associate Administrator of SBA's Office of Disaster Recovery. "These loans can help eligible homeowners and renters repair or replace what was damaged while giving businesses and private nonprofits the resources to continue operating as their communities recover."

Interest rates are as low as 4% for businesses, 3.625% for nonprofits, and 2.875% for homeowners and renters, with terms up to 30 years. Interest does not begin to accrue, and payments are not due until 12 months from the date of the first loan disbursement. The SBA determines eligibility and sets loan amounts and terms based on each applicant's financial condition.

To apply online, visit sba.gov/disaster. Applicants may also call SBA's National Support Network Center at (866) SBA-HELP or email [email protected] for more information on disaster assistance. For people who are deaf, hard of hearing, or have a speech disability, please dial 7-1-1 to access telecommunications relay services.

The filing deadline for returning applications for physical property damage is Dec. 7. The deadline to return economic injury applications is July 7, 2027.

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About the U.S. Small Business Administration

The U.S. Small Business Administration helps power the American dream of business ownership. As the only go-to resource and voice for small businesses backed by the strength of the federal government, the SBA empowers entrepreneurs and small business owners with the resources and support they need to start, grow, expand their businesses, or recover from a declared disaster. It delivers services through an extensive network of SBA field offices and partnerships with public and private organizations. To learn more, visit www.sba.gov.

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