SBA Offers Loans to More Than Businesses

Redding-area residents suffering damage from the Carr Fire have a financial resource some may think only applies to businesses: the federal Small Business Administration or SBA.

With the presidential declaration of Shasta County as a major disaster area, residents are eligible for various types of low-interest federally backed loans from the SBA for impacts suffered from the disastrous fire. They include:

— Home and property personal loans. Homeowners may apply for up to $200,000 to replace or repair their primary residence under certain conditions. In some cases, the SBA can refinance all or part of a previous mortgage when the applicant does not have credit available elsewhere and has suffered substantial disaster damage not covered by insurance. Renters and homeowners may borrow up to $40,000 to replace or repair personal property — such as clothing, furniture, cars and appliances — damaged or destroyed in a disaster.

— Business and physical disaster loans. If you are in a declared disaster area and have experienced damage to your business, you may be eligible for financial assistance from the SBA. Businesses of any size and most private nonprofit organizations may apply to the SBA for a loan to recover after a disaster. Loans are available up to $2 million.

— Economic injury disaster loans (EIDL). If you have suffered substantial economic injury and are a small business, small agricultural cooperative or private non-profit, you may be eligible for assistance. Substantial economic injury means the business is unable to meet its obligations and to pay its ordinary and necessary operating expenses. EIDLs provide the necessary working capital to help small businesses survive until normal operations resume after a disaster.

Specific information may be obtained at the Carr Fire Disaster Recovery Center (DRC) in the former K-Mart building, 2685 Hilltop Drive in Redding. Those seeking aid should first register with the Federal Emergency Management Agency (FEMA). Residents who may not qualify for SBA assistance, may be able to receive it from FEMA.
Detailed information also is available at the SBA disaster loan website at
Application for SBA loans can be made at the DRC or online.
The City of Redding and County of Shasta have set up the following web site to provide comprehensive information on recovery from the Carr Fire:
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Press Release

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