Changes Made to Disaster Program

Eagle Times Staff
WASHINGTON, DC — The federal Small Business Administration has announced new rules for disaster survivors and small businesses needing relief following a federally declared disaster.

The rule is effective for all disasters declared on or after July 31.

“The Biden-Harris Administration has prioritized maximizing resources for disaster survivors so that they can successfully recover and build resilience to the effects of climate change that have led to more frequent and costly natural disasters,” said SBA Administrator Isabella Casillas Guzman. “The SBA’s disaster loan program rule modifications will ensure more flexible and affordable disaster loans are available for small businesses, nonprofits, renters and homeowners that will allow them to focus on recovering quickly so their communities can survive and thrive again.”

It’s been almost 30 years since changes have been made to account for inflation and rising construction costs.

“SBA is more than doubling the caps for its home disaster loan program,” said Bailey DeVries, associate administrator for investment and innovation and acting associate administrator for capital access.

The agency is also expanding its mitigation assistance to other types of hazards. Communities are often under threat from multiple types of hazards, including hurricanes, floods, tornadoes, wildfires, earthquakes and more. Property owners will be allowed to use their disaster loan funds to rebuild stronger and more resilient.

In 2022, the administration announced it would waive the interest rate for the first year and extend the initial payment deferment period automatically to 12 months for disasters declared through Sept. 30, 2023. This change is now permanent.

Additional changes include loan limits, increased payment deferral periods, and the required documentation.

For additional details on the changes to the agency’s rules, visit sba.gov.