Relief available to Hawai‘i businesses, private nonprofits, and residents affected by Kona low storms

Low-interest federal disaster loans to Hawaii businesses, private nonprofit organizations and residents affected by severe storms from the Kona low systems in March are now available through the U.S. Small Business Administration.

These loans are in response to the Presidential disaster declaration issued on April 7, which covers Physical Damage loans and Economic Injury Disaster loans for businesses and organizations impacted in Hawai‘i and Maui Counties as well as the City and County of Honolulu.

Small businesses and most private nonprofit organizations in Kalawao and Kaua‘i are only eligible to apply for Economic Injury Disaster Loans, according to a news release from Kaua‘i County.

The SBA is unable to provide disaster loans to agricultural producers, farmers, or ranchers, except for aquaculture enterprises.

“Through a presidential declaration, SBA provides financial assistance to help communities recover,” said Chris Stallings, associate administrator of the Office of Disaster Recovery and Resilience at the SBA. “We offer disaster loans to homeowners, renters, businesses, and private nonprofits affected by the disaster.”

Click the following link to apply: https://lending.sba.gov/search-disaster/?disaster=HI-20010.

If approved for a loan, businesses and nonprofits may borrow up to $2 million to repair or replace disaster-damaged or destroyed real estate, machinery and equipment, inventory, and other business assets.

Economic Injury Disaster Loans are for working capital needs caused by the disaster and are available even if the business or personal nonprofits did not suffer any physical damage, according to the news release. They may be used to pay fixed debts, payroll, accounts payable, and other bills not paid due to the disaster.

Homeowners and renters are eligible to apply for home and personal property loans and may borrow up to $100,000 to replace or repair personal property, such as clothing, furniture, cars and appliances. Homeowners may apply for up to $500,000 to replace or repair their primary residence.

Applicants may be eligible for a loan increase of up to 20% of their verified physical damage for mitigation purposes. Eligible mitigation improvements may include insulating pipes, walls and attics, weather stripping doors and windows, and installing storm windows to help protect property and occupants from future disasters.

The Small Business Administration’s Economic Injury Disaster Loan program is available to eligible small businesses, small agricultural cooperatives, nurseries and private nonprofits — including faith-based organizations — impacted by financial losses directly related to this disaster.

Interest rates are as low as 4% for businesses, 3.625% for PNPs, and 2.875% for homeowners and renters with terms of up to 30 years. Interest does not begin to accrue, and payments are not due until 12 months from the date of the first loan disbursement.

The Small Business Administration determines eligibility and sets loan amounts and terms based on each applicant’s financial condition. As soon as Federal-State Disaster Recovery Centers open throughout the affected area, SBA will provide one-on-one assistance to disaster loan applicants.

Additional information and details on the location of disaster recovery centers are available by calling the SBA Customer Service Center at 800-659-2955. To apply online, visit sba.gov/disaster.

Applicants may also call SBA’s Customer Service Center at 800-659-2955 or email disastercustomerservice@sba.gov for more information on SBA disaster assistance.

For people who are deaf, hard of hearing, or have a speech disability, dial 711 to access telecommunications relay services.