SBA opens disaster loan program for Oregon storm-hit businesses and residents

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Oregon disaster loan program

Highlights

The U.S. Small Business Administration offers Oregon storm-affected businesses and nonprofits physical disaster loans up to $2 million, and homeowners up to $500,000 for residence repairs.
Eligible upgrades include a loan increase up to 20% of verified physical damage for mitigation, such as insulating pipes and installing storm windows.
Economic Injury Disaster Loans provide up to $2 million for working capital at interest rates as low as 4% for businesses, 3.625% for nonprofits, and 2.875% for homeowners and renters, with payment deferred for 12 months.

Loan terms and eligibility in affected counties

As announced by the U.S. Small Business Administration, businesses and nonprofits in the designated Oregon counties can apply for business physical disaster loans of up to $2 million to repair or replace damaged real estate, machinery, equipment, inventory and other assets.

Homeowners and renters can seek loans of up to $100,000 to repair or replace personal property such as clothing, furniture, cars and appliances. Homeowners can also apply for up to $500,000 to repair or replace their primary residence.

Applicants may also qualify for a loan increase of up to 20% of verified physical damage for mitigation work. Eligible upgrades include insulating pipes, walls and attics, weather stripping doors and windows, and installing storm windows to reduce exposure to future disasters.

Chris Stallings, associate administrator of the Office of Disaster Recovery and Resilience at the SBA, says the rural declaration allows the agency to provide financial assistance to help affected communities recover.

Working capital support and repayment conditions

SBA's Economic Injury Disaster Loan program is also available to eligible small businesses, small agricultural cooperatives and private nonprofit organizations, including faith-based groups, that suffer financial losses tied directly to the disaster. The agency says agricultural producers, farmers and ranchers are not eligible, except for aquaculture enterprises.

EIDL financing can be used for working capital needs even when an applicant has no physical damage. Funds may cover fixed debts, payroll, accounts payable and other bills that cannot be paid because of the disaster.

Loan amounts can reach $2 million, with interest rates as low as 4% for businesses, 3.625% for nonprofits, and 2.875% for homeowners and renters, with terms of up to 30 years. Interest does not begin to accrue, and payments are not due until 12 months after the first loan disbursement, while final loan amounts and terms depend on each applicant's financial condition.

Applications can be submitted online at sba.gov/disaster. The agency also provides assistance through its customer service center by phone and email.

In our earlier coverage of the recent surge in second-lien borrowing and HELOC use, we explained that higher mortgage rates are prompting many U.S. homeowners to tap home equity without refinancing their older low-rate first mortgages. We noted that second liens accounted for a large share of equity withdrawals as borrowers sought working liquidity while avoiding the higher costs of replacing primary loans.

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