By Staff Report
Jonel Hein
As we get ready for the 2024 hurricane season which begins on June 1, it’s important to be aware that the National Oceanic and Atmospheric Administration (NOAA) has predicted an above-normal forecast. This includes an expected range of 17 to 25 named storms, with eight to 13 potentially becoming hurricanes, and four to seven of those possibly being major hurricanes.
Weather catastrophes can significantly impact businesses, from short-term power outages to the need for rebuilding after a hurricane. The Small Business Administration (SBA) offers various programs to assist with recovery after a natural disaster.
SBA disaster loans cover disaster losses not fully covered by insurance or other sources. Proceeds from insurance coverage on home or property may be deducted from the eligible loan amount.
Last year, the SBA made significant modifications to our disaster loan programs increasing the loan limits for homeowners and renters and also insuring there are no payments due for the first 12 months and no interest accrual for that same timeframe.
The programs available include:
Physical Damage Loans
These loans are available to businesses, homeowners, and renters who have experienced physical damage to their property. They cover losses not fully covered by insurance or other benefits.
Businesses and Nonprofits: Up to $2 million to cover disaster losses.
Homeowners: Up to $500,000 to repair or replace their primary residence.
Renters and Homeowners: Up to $100,000 to repair or replace personal property, including clothing, furniture, cars, and appliances.
Economic Injury Disaster Loans (EIDL)
EIDLs are for small businesses, small agricultural cooperatives, and most private nonprofits that have suffered substantial economic injury and cannot meet obligations or operating expenses.
Loan Amount: Up to $2 million to cover financial obligations and operating expenses that could have been met if the disaster had not occurred. The total combined amount for EIDL and physical disaster loans cannot exceed $2 million.
Mitigation Assistance
SBA programs help not only with recovery but also with mitigation to make homes and businesses more resilient to future disasters.
Funding Increase: Physical disaster loans can be increased by up to 20% to fund mitigation projects. A list of eligible projects to mitigate wind, flood, wildfire, earthquake, and hail damage is available on the SBA website.
In Florida, it’s not a question of if but when a hurricane will hit. In 2022 and 2023 in Florida, Hurricanes Ian, Nicole and Idalia each caused over $1 billion in damages.
Businesses should be preparing or updating their emergency response plans. For guidance, visit ready.gov.
Additional resources are available on the State of Florida Division of Emergency Management (DEM) websites: FloridaDisaster.org and FloridaDisaster.biz (floridajobs.org), which provide critical information for businesses before, during, and after a disaster.
Additionally, if you need assistance with your SBA disaster loan application, feel free to reach out to an SBA Resource Partner. Find a local partner at sba.gov/local-assistance.
Stay safe and well!
Jonel Hein is the district director for the U.S. Small Business Administration North Florida District Office.
