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SBA assists businesses impacted by April tornadoes

Staff Report //May 14, 2020//

SBA assists businesses impacted by April tornadoes

Staff Report //May 14, 2020//

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The U.S. Small Business Administration has opened several disaster loan options to businesses affected by tornadoes, storms and high winds on April 12-13.

The SBA will consider impacted businesses in Aiken, Colleton, Hampton, Marlboro, Oconee, Orangeburg and Pickens counties for both Physical and Economic Injury Disaster Loans via its electronic loan application system, according to a news release. Small businesses and nonprofits in the following counties will be eligible only for Economic Injury Disaster Loans for storm damage: Allendale, Anderson, Bamberg, Barnwell, Beaufort, Berkeley, Calhoun, Charleston, Chesterfield, Clarendon, Darlington, Dillon, Dorchester, Edgefield, Florence, Greenville, Jasper, Lexington and Saluda.

Businesses and private nonprofits can borrow up to $2 million at interest rates of 3.75% and 2.75% at the lowest-to-repair or replace cost for real estate, machinery, inventory or other physical assets damaged by the storms. A possible loan increase also will be offered to cover 20% of the damages and install mitigation improvements such as a retaining wall, French drain, sump pump or storm shelter.

Homeowners are eligible to take out loans of $200,000 for repairs or replacements, with $40,000 used for personal property, with interest rates as low as 1.56%, according to the release.

The SBA will determine loan amounts and terms after reviewing the applicant’s financial situation.

“The SBA is strongly committed to providing South Carolina residents with the most effective response possible to assist businesses, homeowners and renters with federal disaster loans. Getting businesses and communities up and running after a disaster is our highest priority,” SBA Administrator Jovita Carranza, said in the release.

Gov. Henry McMaster announced a second state of emergency following last month’s storms to open the state for additional SBA disaster assistance as he had done in March for enterprises impacted by COVID-19.