The U.S. Small Business Administration (SBA) is offering low-interest federal loans for working capital to small businesses economically impacted by the Cahalan Square Shopping Center Fire that occurred June 14-15 in San Jose.
SBA acted under its own authority to declare a disaster following a request received on Aug. 26 from Gov. Edmund Brown, Jr.’s designated representative, Mark S. Ghilarducci, director of the Governor’s Office of Emergency Services.
The disaster declaration makes SBA assistance available in Alameda, Merced, San Benito, San Joaquin, San Mateo, Santa Clara, Santa Cruz and Stanislaus counties in California.
“SBA is strongly committed to providing the most effective and customer-focused response possible to assist California’s small businesses with federal disaster loans. We will be swift in our efforts to help these small businesses recover from the financial impacts of this disaster,” SBA Administrator Maria Contreras-Sweet said.
“Small nonfarm businesses, small agricultural cooperatives, small businesses engaged in aquaculture and most private nonprofit organizations of any size may qualify for Economic Injury Disaster Loans of up to $2 million to help meet financial obligations and operating expenses which could have been met had the disaster not occurred,” said SBA’s San Francisco District Director Mark Quinn. “These loans may be used to pay fixed debts, payroll, accounts payable and other bills that can’t be paid because of the disaster’s impact. Disaster loans can provide vital economic assistance to small businesses to help overcome the temporary loss of revenue they are experiencing.”
Eligibility is based on the financial impact of the disaster only and not on any actual property damage. These loans have an interest rate of 4 percent for small businesses and 2.625 percent for private nonprofit organizations with terms up to 30 years, and are restricted to small businesses without the financial ability to offset the adverse impact without hardship. Applicants may apply online using SBA’s secure website at https://disasterloan.sba.gov/ela.
The filing deadline to return economic injury applications is May 31, 2017.