Small businesses, homeowners and renters have another month to apply for federal disaster loans to help recover from the April flooding that damaged hundreds of houses and companies, a Small Business Administration official said Friday.
At the same time, Florida’s Department of Economic Opportunity said its “bridge loan” program has another three weeks to run.
Federal and state agencies quickly made millions available to business operators and residents whose companies and homes were inundated by an unprecedented storm that dumped more than 2 feet of rain within eight hours in and around Fort Lauderdale-Hollywood International Airport and Port Everglades on April 12. The airport was temporarily closed and a number of businesses around its perimeter were flooded. Many were forced to curtail operations, some for up to several days before reopening.
“We want to get more businesses to apply,” Brian Beard, a spokesman for the SBA’s Office of Disaster Recovery and Resilience, said Friday. He added that $11 million in loans have been approved thus far for Fort Lauderdale-area business owners, homeowner and renters.
“Our loan term is up to 30 years,” Beard said. And during the first year, the loan is interest-free. After that, the rate is 4%. There are no costs to apply and there are no closing costs.
Many area businesses visited by SBA officials several weeks ago had yet to fully account for their losses and had not sought federal assistance. The storm caused an estimated $100 million in damages.
For those still undecided on whether to borrow government money, Beard advised: “Apply now and decide later. We want everybody to keep their options open because you don’t know how long you have to wait for insurance.”
The application deadline is June 26.
Beard offered these points about securing assistance:
- If waiting for an insurance settlement, a business or homeowner can get a loan to allow them to start repairing damage and replacing inventory or personal property. Once the insurance money arrives, it is used to pay off the loan. In effect, the SBA money can be used as a bridge loan. If paid off within a year, it is a free loan.
- A loan can also be used to cover an insurance deductible. A borrower can request an additional 20% of the total estimated damage to be used for mitigation to prevent future damage, such as installing a sump pump, retaining wall, safe room, stronger shingles or adding to the property’s elevation.
- Once offered a loan, the prospective borrower has two months to decide whether to accept it.
- The interest rates are 4% for most businesses, and 2.375% for most homeowners, renters and nonprofits.
- Homeowners and renters with damage should register with FEMA first, to see if they can obtain grant money. FEMA focuses on those most in need.
Referral letters
Beard said people above a certain income level may receive a letter saying they have been referred to the SBA.
“FEMA may still help with temporary housing and basic repairs if the home is not habitable,” he said. Money from FEMA does not repair or replace everything as an insurance policy would, but does fund basic necessities.
But if someone is referred to the SBA, “it is very important for the person to follow through and apply for a loan, even if they do not want one. If the loan is denied, they may be referred back to FEMA for possible additional assistance for personal property, including cars.”
“If someone gets that referral letter and doesn’t do anything else, they lose the possibility of getting additional federal assistance for personal property damage,” Beard said.
The SBA is operating a recovery center at Urban League of Broward County, 560 NW 27th Ave., Fort Lauderdale, from 9 a.m. to 5 p.m. Mondays through Fridays except for Memorial Day. It has opened a new center with FEMA at the Sadkin Community Center, 1176 NW 42nd Way, Lauderhill. The office is open Mondays through Saturdays between 9 a.m. and 8 p.m.
In addition, a joint SBA-FEMA center for business owners, homeowners, and renters is open at Hortt Park, 1700 SW 14th Court, Fort Lauderdale.
Joe Cavaretta/South Florida Sun Sentinel
People retrieve valuables amid April flood waters in the Edgewood neighborhood of Fort Lauderdale. Homeowners and renters are still eligible for federal loans through late June, government officials say. (Joe Cavaretta/South Florida Sun Sentinel file)
State floats more than $3 million in loans
In an announcement on Friday, the state DEO said more than $3 million in loans have been advanced to 90 Broward County businesses impacted by floods through the Florida Small Business Emergency Bridge Loan Program, which was activated by Gov. Ron DeSantis on April 20. The businesses benefitting thus far include those in the retail, food service and hospitality, construction and manufacturing sectors, the agency said.
The loan program offers short-term, zero-interest loans to small businesses that need to repair physical damage to their property or suffered financial setbacks due to lost sales.
The state said applicants can still apply through June 19, 2023, or until all available funds are expended. The money comes in the form of loans, not grants, and must be repaid. The loans carry no interest and are capped at $50,000 per eligible applicant.
For more information or to apply, visit FloridaJobs.org/EBL .Business owners who need further information may call 833-832-4494 Monday through Friday from 8 a.m. to 5 p.m.