SBA Financing Surpasses $1 Billion in Hurricane Areas

Demonstrating a strong commitment to help businesses affected by last year’s devastating hurricanes that struck the Gulf Coast and Florida, the U.S. Small Business Administration has already approved over $1.1 billion in loans through a combination of the agency’s direct disaster loan and regular loan guarantee programs.

More than 9,700 low-interest, SBA disaster loans, totaling over $791 million have been approved for businesses in Louisiana, Mississippi, Texas, Alabama and Florida following the hurricanes. More than 1,740 loans totaling more than $334 million have been made to small businesses in the affected areas through the SBA’s two main business loan programs.

“Helping the business community following these terrible disasters is one of our top priorities,” said SBA Administrator Hector V. Barreto. “As they recover, they will also lay the foundation for a renewed economic base. These loans will also help businesses grow again and create jobs, helping to revitalize their communities.”

There are two types of disaster loans. A business of any size may obtain loans to finance the reconstruction of business that has been physically damaged. Small businesses may receive an economic injury disaster loan if they have been economically impacted by a disaster.

There are two types of regular SBA small business loans included in the totals. The first is the 7(a) general business loan guarantee program. The other is the 504, Certified Development Company loan program used for financing fixed assets.

Through January 26, the SBA has approved almost 51,350 disaster loans for nearly $3.6 billion to homeowners, renters and businesses affected by last year’s hurricanes.