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Puerto Rico businesses affected by ’20 storms, flooding still may apply for SBA loans

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The US Small Business Administration is reminding small businesses and most private nonprofit organizations in Puerto Rico that Economic Injury Disaster Loans (EIDLs) are still available to anyone in the declared municipalities in Puerto Rico affected by severe storm and flooding on Sept. 13, 2020.

The application deadline is Aug. 5 in the following adjacent municipalities in Arecibo, Barceloneta, Ciales, Florida, Hatillo and Utuado in Puerto Rico.

“Waiting to file an SBA application could cause unnecessary delays in receiving disaster assistance, and survivors may miss the application deadline. Submitting the loan application is an essential part of the disaster recovery process,” said Kem Fleming, director of SBA Field Operations Center East.

The loan amount can be up to $2 million with interest rates of 3% for small businesses and 2.75% for private nonprofit organizations, with terms up to 30 years. The SBA determines eligibility based on the size of the applicant, type of activity and its financial resources.

 Loan amounts and terms are set by the SBA and are based on each applicant’s financial condition.

These working capital loans may be used to pay fixed debts, payroll, accounts payable, and other bills that could have been paid had the disaster not occurred. The loans are not intended to replace lost sales or profits, the agency noted.

Applicants may apply online using the Electronic Loan Application (ELA) via the SBA’s website and should apply under SBA declaration #16775, not for the COVID-19 incident.

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This story was written by our staff based on a press release.
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