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Alabama Small Business Development Center Network
SBA Disaster Assistance Alabama

SBA Disaster Assistance – Tornado Damage January 2023

Low-interest disaster loans from the U.S. Small Business Administration (SBA) are available to businesses and residents in Alabama following the announcement of a Presidential disaster declaration due to damages from severe storms, straight-line winds and tornadoes on Jan. 12.  Applicants may apply online using the Electronic Loan Application (ELA) via SBA’s secure website at https://disasterloanassistance.sba.gov/ela/s/ and should apply under SBA declaration # 17759.
Deadlines: 3/16/23 for Physical Damage, 10/16/23 for Economic Injury.

The disaster declaration covers Autauga, Coosa, Dallas, Elmore, Greene, Hale, Sumter, and Tallapoosa counties in Alabama, which are eligible for both Physical and Economic Injury Disaster Loans from the SBA. Small businesses and most private nonprofit organizations in the following adjacent counties are eligible to apply only for SBA Economic Injury Disaster Loans (EIDLs): Bibb, Chambers, Choctaw, Clay, Chilton, Lee, Lowndes, Macon, Marengo, Montgomery, Perry, Pickens, Randolph, Shelby, Talladega, Tuscaloosa, and Wilcox in Alabama.

  • 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.
  • For small businesses, small agricultural cooperatives, small businesses engaged in aquaculture and most private nonprofit organizations, the SBA offers Economic Injury Disaster Loans (EIDLs) to help meet working capital needs caused by the disaster. Economic Injury Disaster Loan assistance is available regardless of whether the business suffered any physical property damage.
  • Disaster loans up to $200,000 are available to homeowners to repair or replace disaster-damaged or destroyed real estate. Homeowners and renters are eligible for up to $40,000 to repair or replace disaster-damaged or destroyed personal property.
  • Interest rates are as low as 3.305 percent for businesses, 2.375 percent for nonprofit organizations, and 2.313 percent for homeowners and renters, with terms up to 30 years. Loan amounts and terms are set by the SBA and are based on each applicant’s financial condition.

Read the full SBA Fact Sheets here:

What Types of Disaster Loans are Available?

  • Business Physical Disaster Loans – Loans to businesses to repair or replace disaster-damaged property owned by the business, including real estate, inventories, supplies, machinery and equipment. Businesses of any size are eligible. Private, non-profit organizations such as charities, churches, private universities, etc., are also eligible.
  • Economic Injury Disaster Loans (EIDL) – Working capital loans to help small businesses, small agricultural cooperatives, small businesses engaged in aquaculture, and most private, non-profit organizations of all sizes meet their ordinary and necessary financial obligations that cannot be met as a direct result of the disaster. These loans are intended to assist through the disaster recovery period.
  • Home Disaster Loans – Loans to homeowners or renters to repair or replace disaster-damaged real estate and personal property, including automobiles.

What are the Credit Requirements?

  • Credit History – Applicants must have a credit history acceptable to SBA.
  • Repayment – Applicants must show the ability to repay all loans.
  •  Collateral – Collateral is required for physical loss loans over $25,000 and all EIDL loans over $25,000. SBA takes real estate as collateral when it is available. SBA will not decline a loan for lack of collateral, but requires you to pledge what is available.

What are the Interest Rates?

  • By law, the interest rates depend on whether each applicant has Credit Available Elsewhere. An applicant does not have Credit Available Elsewhere when SBA determines the applicant does not have sufficient funds or other resources, or the ability to borrow from non-government sources, to provide for its own disaster recovery. An applicant, which SBA determines to have the ability to provide for his or her own recovery is deemed to have Credit Available Elsewhere. Interest rates are fixed for the term of the loan. The interest rates applicable for this disaster are:
    table

What are Loan Terms?

  • The law authorizes loan terms up to a maximum of 30 years. However, the law restricts businesses with credit available elsewhere to a maximum 7-year term. SBA sets the installment payment amount and corresponding maturity based upon each borrower’s ability to repay.

Office Locations

Business Recovery Centers (BRC) and Disaster Recovery Centers (DCR) are open in six locations. SBA Customer Service Representatives at the Center will assist business owners and residents in filling out a disaster loan application, accept documents for existing applications, and provide updates on an application’s status. The center will operate as indicated below until further notice:

 

Office Type

 

County

 

Building Name/Location

 

Street

 

City

 

ST

 

Zip

 

Day

 

Hours

 

IOF

 

Chilton

 

Alabama Emergency Management Agency

 

5898 County Road 41

 

Clanton

 

AL

 

35046

 

Mon – Sun

 

7:00 am – 7:00 pm

 

BRC

 

Autauga

 

Prattville Area Chamber of Commerce

 

131 North Court Street

 

Prattville

 

AL

 

36067

 

Mon – Sat

Opens Fri, Jan 27 @ 12:00 pm Mon-Fri, 8:00 am-5:00 pm Sat, 8:00 am-1:00 pm
 

BRC

 

Dallas

 

GTC Administrative Building

 

2300 Summerfield Road

 

Selma

 

AL

 

36701

 

Mon – Sat

 

8:30 am – 5:30 pm

 

DRC

 

Autauga

 

Alabama Disaster Relief Center

 

118 Jesse Samuel Hunt Blvd

 

Prattville

 

AL

 

36067

 

Mon – Sun

Opens Thur, Jan 26 @ 1:00 pm

8:00 am – 6:00 pm

 

DRC

 

Coosa

 

Rockford Baptist Church

 

 9575 US-231

 

Rockford

 

AL

 

35136

 

Mon – Sun

Opens Fri, Jan 27 @ 1:00 pm

8:00am – 6:00pm

 

DRC

 

Dallas

 

Crosspoint Christian Church

 

1710 West Dallas Ave

 

Selma

 

AL

 

36701

 

Mon – Sun

Opens Thu, Jan 26 @ 1:00 pm

8:00 am – 6:00 pm

 

DRC

 

Elmore

 

Wetumpka Court House

 

100 E. Commerce

 

Wetumpka

 

AL

 

36092

 

Mon – Sun

Opens Thu, Jan 26 @ 1:00 pm

8:00 am – 6:00 pm

Building back smarter and stronger can be an effective recovery tool for future disasters. Applicants may be eligible for a loan amount increase of up to 20 percent of their physical damages, as verified by the SBA, for mitigation purposes. Eligible mitigation improvements may include a safe room or storm shelter, sump pump, elevation, retaining walls, and landscaping to help protect property and occupants from future damage caused by a similar disaster.

Applicants may apply online using the Electronic Loan Application (ELA) via SBA’s secure website at https://disasterloanassistance.sba.gov/ela/s/ and should apply under SBA declaration # 17759.
To be considered for all forms of disaster assistance, applicants should register online at DisasterAssistance.gov or download the FEMA mobile app. If online or mobile access is unavailable, applicants should call the FEMA toll-free helpline at 800-621-3362. Those who use 711-Relay or Video Relay Services should call 800-621-3362.

Disaster loan information and application forms can also be obtained by calling the SBA’s Customer Service Center at 800-659-2955 (if you are deaf, hard of hearing, or have a speech disability, please dial 7-1-1 to access telecommunications relay services) or sending an email to DisasterCustomerService@sba.gov. Loan applications can also be downloaded from sba.gov/disaster. Completed applications should be mailed to: U.S. Small Business Administration, Processing and Disbursement Center, 14925 Kingsport Road, Fort Worth, TX 76155.
The filing deadline to return applications for physical property damage is March 16, 2023. The deadline to return economic injury applications is Oct. 16, 2023.

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