Oregon businesses physically impacted by wildfires in eight counties are now entitled to low-interest federal loans through the Sba (SBA). Businesses in 14 adjacent Oregon counties and 2 California counties could also seek financial support with the SBA’s economic injury loan program.
These financial aids for businesses are part of a significant disaster declaration President Trump signed into effect late Tuesday. Oregon Governor Kate Brown had previously requested the declaration Monday. The declaration covers virtually all of western Oregon, in addition to some counties in the central and eastern parts of their state.
Besides businesses, individuals are also able to make an application for educational funding through the Federal Emergency Management Agency’s DisasterAssistance.gov website.
The affected counties approved to receive SBA loans for physical damage because of wildfire are: Clackamas, Douglas, Jackson, Klamath, Lane, Lincoln, Linn, and Marion. Businesses within those counties may be eligible to get federal funding of up to $2 million, per the SBA’s fact sheet [PDF] around the program.
If a company does receive aid through this SBA program, it may make use of the funds to “repair or replace disaster-damaged property.” The SBA definition of physical damage includes property, inventories, supplies, machinery, and equipment.
Businesses of any size inside the affected counties may apply for funding through the federal physical disaster program. Additionally, private, non-profit organizations (including, but are not limited to charities, churches, and private universities) will also be eligible.
It is noteworthy the SBA is administering loans for businesses within the impacted areas and not grants. As a result, businesses will have to repay any funds received with interest. However, the SBA pegs this interest quite low — it’s 3% for businesses lacking credit elsewhere and 6% for businesses along with other available lines of credit. Non-profits are locked into a level lower interest rate of two.75%.
Loan terms are also generous, with some reaching up to 3 decades for businesses without additional credit and 7 years for businesses with other credit sources. Exact term lengths are determined based on each borrower’s ability to repay your finance.
The adjacent Oregon counties also entitled to funding are: Benton, Coos, Curry, Deschutes, Hood River, Jefferson, Josephine, Lake, Multnomah, Polk, Tillamook, Wasco, Washington, and Yamhill. The California counties of Modoc and Siskiyou are additionally included to be in the adjacent area.
Businesses within those counties can seek loans of up to $2 million via the SBA’s Economic Injury Disaster Loan (EIDL) program. Unlike the loans available for businesses within the declared disaster area, EIDL loans can’t be utilized for damage to property; instead, the SBA limits these loans to covering “necessary financial obligations that can't be met as a direct consequence of the disaster.”
Interest rates for EIDL loans are the same physical disaster loans: 3% for businesses and a pair of.75% for non-profits.
How To Apply For Oregon Wildfire Disaster Relief Loans
Oregon businesses (in addition to those who work in the 2 designated California counties) interested in applying for federal relief may do so via the SBA website. Applications for physical disaster relief loans may also be downloaded and mailed to the SBA:
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U.S. Sba, Processing and Disbursement Center
14925 Kingsport Road, Fort Worth, TX 76155
To obtain a loan with the SBA online, businesses need to:
- Create an account within the SBA disaster loan portal, which requires the applicant’s Social Security Number.
- Answer several questions that help determine eligibility, type of loan, and reason behind aid.
- Fill the disaster relief application, which requires information like the damaged property addresses, estimated loss, and insurance info.
- Fill out an IRS form to request the business’ tax transcript (the SBA uses this transcript to look for the applicant’s repayment ability).
Depending on the type of business, you might need to fill out additional forms.
For Further Assistance:
Call the SBA’s customer support at (800) 659-2955 or email the SBA at disastercustomerservice@sba.gov. The SBA also provides customer support for that deaf or hard-of-hearing — for that line call (800) 877-8339.
The application window for physical disaster loans closes November 16, 2022. EIDL applicants may apply through June 15, 2022.
The SBA sets a number of criteria that businesses have to meet in order to be eligible for financing through either program. Businesses must:
- Maintain a suitable credit rating as deemed through the SBA.
- Show the ability to repay all loans.
- Provide collateral for loans above $25,000 (this collateral can include property).
Other Financial Relief Options
Businesses impacted by the Oregon wildfires might have difficulty seeking other financial relief because of the recession generated by COVID-19. However, it’s always worth checking around for additional sources of funding.
For instance, you (as well as your employees) may be eligible for a tax relief. Visit the IRS website to learn more.
The Oregon Community Foundation also has a hub for supporting wildfire relief throughout the state.
For additional and much more general coverage from the SBA’s disaster relief program, read Merchant’s Maverick’s article covering the topic.
