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Just hit by a disaster? And, you have no clue on how to manage the financial losses incurred? How to get your business back on track? Just when you are speculating on these questions and blaming the almighty, we have got news that would get some respite. You might be eligible for the various financial assistance programs by SBA that seek to help and rebuild disaster hit businesses. Your business has been an unfortunate victim of a disaster and you don't have the immediate funds to compensate. The physical and financial injury caused has left you looking for financial assistance. U.S. Federal government's Small Business Administration (SBA) might find you eligible for its various financial assistance programs if you happen to fall in the disaster declared area. Terms and Types
SBA disaster loans for small businesses are low interest, long term loans for damages caused to your real estate, machinery & equipment, technical infrastructure and other assets. You can also apply for meeting your working capital needs. Physical Disaster Loans
Besides home & property loans by SBA that cater to your personal needs after you have experienced a disaster, you can apply for a physical disaster loans to cover uninsured and under insured losses for your business. Financial assistance up to $ 2 million can be claimed for damages to physical & technical infrastructure, Machinery & Equipment, Inventory and fixtures. SBA provides for an increase of 20% of the loan amount on the damages caused to real estate for making construction improvements to avoid future disasters. Economic Injury Disaster Loans
All small businesses experiencing a financial turmoil after a disaster and located in the declared area might be eligible for Economic Injury Disaster Loans. Under this program you can apply for a loan amount up to $ 2 million as well to meet all your financial commitments. Other credit options available?
If you have credit available elsewhere, the interest rate for the above mentioned loans would not exceed 8% of the loan amount and if you do not, the interest rate would not exceed 4%. The tenure of repayment can be fixed up to 30 years. Where to apply?
You can either apply directly to the SBA or get in touch with an approved consultant to guide you through the process. The loan application will be verified and the value of your damages would be estimated by an inspector sent by the SBA. Once verified the application would be processed further. Are you Disaster ready?
Even though there are measures to pull you out of a sticky situation in times of a financial crisis, you should be well prepared for these disasters by reviewing your insurance coverage from time to time, backup options, safe keeping of all the financial records and important documents.. Planning beforehand would certainly minimise the pain that your business will have to undergo in times of a disaster. So, if your business is disaster hit and you have suffered a huge physical and financial loss that is beyond your capacity to compensate? Do not worry. The above mentioned programs might just be the ray of light that you have been looking for. About the Writer Raj Tulshan is a seasoned expert on financial matters. He has consulted and written extensively on matters relating to business loans alternative financing options. Writing comes naturally to him and he has helped a large number of people educating them on issues related to commercial loans, banking and finance. For more information visit here - http://www.biz2credit.com/small-business-funding/disaster-loans.html
Article Source- http://goarticles.com/article/Sustain-Your-Business-in-a-Disaster/7350939/
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