The Federal Emergency Management Agency (FEMA) is urging Tennessee businesses that suffered damages during the deadly tornadoes that ripped through the state earlier this month to apply for financial relief as soon as possible.
“FEMA may refer survivors of the Dec. 9 tornadoes to the U.S. Small Business Administration (SBA) with information on how to apply for a disaster loan. It’s important to submit the loan application as soon as possible,” the organization said in a Wednesday release. “SBA disaster loans are the largest source of federal disaster recovery funds for survivors. SBA offers long-term, low-interest disaster loans to businesses of all sizes, private nonprofit organizations, homeowners and renters.”
The deadline to file a loan application for physical property damage is February 12, 2024. The deadline to file a loan application for economic injury applications is September 13, 2024.
According to the federal agency, those who apply for SBA relief are not obligated to take a loan, even if they qualify for one.
SBA disaster loans cover losses that private insurance will not cover, but FEMA said that business owners who might need a disaster relief loan should not wait until they receive an insurance settlement before applying because they may find that they were underinsured or that their insurance companies will not pay enough to cover all of their damages.
“Businesses and private nonprofit organizations of any size may borrow up to $2 million to repair or replace disaster-damaged or destroyed real estate, machinery and equipment, inventory, and other business assets,” according to FEMA.
As reported by The Tennessee Star, the SBA stepped in almost immediately to offer relief to Tennesseeans whose businesses may have suffered losses during the early December tornadoes that killed six people.
“Low-interest disaster loans from the U.S. Small Business Administration (SBA) are available to businesses and residents in Tennessee following the announcement of a Presidential disaster declaration due to severe storms and tornadoes on December 9, 2023,” said the SBA on its website on December 16, less than a week after the storms.
“SBA’s mission-driven team stands ready to help Tennessee small businesses and residents impacted by this disaster in every way possible under President Biden’s disaster declaration for certain affected areas,” said SBA Administrator Isabel Casillas Guzman. “We’re committed to providing federal disaster loans swiftly and efficiently, with a customer-centric approach to help businesses and communities recover and rebuild.”
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Pete D’Abrosca is a reporter at The Tennessee Star and The Star News Network. Follow Pete on Twitter/X.
Photo “Tornado Damage” by American Red Cross of Tennessee.
