Ice Storms: SBA Provides Fact Sheet on Economic Injury Disaster Loans (EIDL)
Disaster loan assistance from the United States Small Business Association (SBA) is now available from the winter ice storm between January 12th and January 20th of 2024. Oregon counties affected: Clackamas, Clatsop, Lane, Lincoln, Multnomah, and Washington; the contiguous Oregon counties of: Benton, Columbia, Deschutes, Douglas, Hood River, Klamath, Linn, Marion, Polk, Tillamook, Wasco, and Yamhill; and the contiguous Washington counties of: Clark, Pacific, Skamania, and Wahkiakum.
Economic Injury Disaster Loans (EIDLs) are working capital loans to help small businesses, small agricultural cooperatives, small businesses engaged in aquaculture, and most private, nonprofit organizations of all sizes meet their ordinary and necessary financial obligations that cannot be met as a direct result of the disaster. These loans are intended to assist through the disaster recovery period. The application filing deadline is November 8, 2024.
Credit Requirements
Credit History: Applicants must have a credit history acceptable to SBA.
Repayment: Applicants must show the ability to repay the loan.
Interest Rates
The interest rate is determined by formulas set by law and is fixed for the life of the loan. The maximum interest rate for this program is 4 percent.
Loan Terms
The law authorizes loan terms up to a maximum of 30 years. SBA will determine an appropriate installment payment based on the financial condition of each borrower, which in turn will determine the loan term. Borrowers may be required to provide collateral.
Loan Amount Limit
The law limits EIDLs to $2,000,000 for alleviating economic injury caused by the disaster. 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. If a business is a major source of employment, SBA has the authority to waive the $2,000,000 statutory limit.
Loan Eligibility Restrictions|
Noncompliance: Applicants who have not complied with the terms of previous SBA loans may not be eligible. This includes borrowers who did not maintain required flood insurance and/or hazard insurance on previous SBA loans.
Note: Loan applicants should check with agencies / organizations administering any grant or other assistance program under this declaration to determine how an approval of SBA disaster loan might affect their eligibility.
Refinancing
Economic injury disaster loans cannot be used to refinance long term debts.
Insurance Requirements
To protect each borrower and the Agency, SBA may require you to obtain and maintain appropriate insurance. By law, borrowers whose damaged or collateral property is located in a special flood hazard area must purchase and maintain flood insurance. SBA requires that flood insurance coverage be the lesser of 1) the total of the disaster loan, 2) the insurable value of the property, or 3) the maximum insurance available.
Applications for disaster loans may be submitted online using the MySBA Loan Portal, disastercustomerservice@sba.gov, or other locally announced locations. Please contact the SBA’s Customer Service Center by email at or by phone at 1-800-659-2955 for further assistance. For people who are deaf, hard of hearing, or have a speech disability, please dial 7-1-1 to access telecommunications relay services.
