The Small Business Administration offers two types of loans to small businesses in the event of a disaster. We will be discussing those two types in today’s article.
The first of the two types of SBA loans applies to physical damage to your property. Of course, you should have proper disaster insurance on your business property, equipment, vehicles, etc. However, this coverage is not always enough.
Sometimes you may not even have the appropriate coverage. This can be the case for certain types of disaster coverage, such as flooding, which are not covered under normal insurance rates. In this case, you would need to seek a loan sponsored by the SBA to cover the repair of your physical damage.
The other of the two types of SBA loans is for economic damage. Essentially, this entails funds that are extended to small businesses in order to keep them afloat while they make necessary repairs. In other words, this funding is extended to you for the purpose of paying for your basic day-to-day operations. It would cover such expenses as your utilities, as well as the paychecks you must pay your employees.
Both of the SBA loans listed above are designed to keep small businesses operational in disaster situations. They were created in order to strengthen America’s economic vitality by channeling funds into disaster-hit locations. By bringing these funds to these companies quickly and easily, it greatly increases the recovery time of these areas. This is quite beneficial to all those who have been struck by a disaster.