The deadline to apply for low-interest federal loans for businesses, homeowners and nonprofits that suffered flood damage in late May is approaching.
The federal Small Business Administration (SBA) set a deadline of Sept. 24 for applications for physical damage and a deadline of April 25, 2019, for economic injury disaster loans, which are to help businesses and nonprofits meet “ordinary and necessary financial obligations that cannot be met as a result of the disaster.”
Businesses and homeowners from Baltimore and Howard counties and Baltimore City are eligible to apply. Oella, Catonsville and Ellicott City were some of the areas hardest hit when around 10 inches of rain fell in about two hours on May 27.
The loan rates vary depending on whether an applicant has lines of credit available elsewhere. Applicants without credit elsewhere are eligible for lower-interest loans than those who have other lines of credit.
Interest rates range from a low of 1.983 percent for homeowners without other available lines of credit to 7.220 percent for businesses that have credit available.
Applicants must show a credit history, the ability to repay all loans and collateral to qualify for a loan, in addition to being in an eligible area.
Businesses have a loan maximum of $2 million and home loans are capped out at $200,000 for the repair or replacement of real estate and $40,000 for the replacement of personal property. Only uninsured or otherwise uncompensated losses are eligible for loan applications.