By Pacific Island Times News Staff
The U.S. Small Business Administration has approved more than $250 million in federal disaster loans for Guam businesses and residents impacted by Typhoon Mawar in May.
“Although the deadline to apply for property damage loans has expired, small businesses and most private nonprofit organizations of any size may continue to apply for an Economic Injury Disaster Loan to help meet working capital needs caused by the disaster," said Francisco Sánchez, associate administrator of SBA's Office of Disaster Recovery & Resilience.
"Economic injury assistance is available regardless of whether the business or nonprofit organization suffered any property damage," he added.
Sánchez said SBA has approved $40.4 million for businesses and $209.6 million for residents to help rebuild and recover from this disaster.
Small nonfarm businesses, small agricultural cooperatives, small businesses engaged in aquaculture and most private nonprofit organizations of any size may qualify for an Economic Injury Disaster Loan of up to $2 million to help meet financial obligations and operating expenses which could have been met had the disaster not occurred.
According to the SBA program, these loans may be used to pay fixed debts, payroll, accounts payable and other bills that can’t be paid because of the disaster’s impact.
These low-interest federal disaster loans are available in Guam.
The interest rate is 4 percent for businesses and 2.375 percent for private nonprofit organizations with terms up to 30 years. The deadline to apply for economic injury is Feb. 28, 2024.
Interest does not begin to accrue until 12 months from the date of the initial disaster loan disbursement. SBA disaster loan repayment begins 12 months from the date of the first disbursement.
Applicants may apply online and receive additional disaster assistance information at SBA.gov/disaster. Applicants may also call SBA’s Customer Service Center at (800) 659‑2955 or email email@example.com for more information on SBA disaster assistance. For people who are deaf, hard of hearing, or have a speech disability, please dial 7-1-1 to access telecommunications relay services.