NEWS RELEASE: SBA DISASTER ASSISTANCE AVAILABLE FOR ‘KONA LOW’ STORMSPosted on Feb 7, 2022 in Main, News Releases
DEPARTMENT OF COMMERCE AND CONSUMER AFFAIRS
DAVID Y. IGE
CATHERINE P. AWAKUNI COLÓN
FOR IMMEDIATE RELEASE
February 3, 2022
SBA Disaster Assistance Available for Areas in Hawai‘i Damaged in ‘Kona Low’ Storms; Centers to Help Public Apply for Low-Interest Loans Opened January 31
HONOLULU – The U.S. Small Business Administration (SBA) on Friday authorized low-interest federal disaster loans for businesses and residents on several islands that were affected by severe storms, flooding and landslides as a result of the “Kona low” weather system that struck Hawai‘i Dec. 5-10, 2021.
The loans are available to businesses and residents of the City and County of Honolulu, County of Maui (including Molokaʻi and Lānaʻi), and contiguous County of Kalawao. Loan applications will be accepted through “virtual assistance centers” started Monday and are available for download immediately at https://disasterloanassistance.sba.gov/ela/s/.
“We are pleased that SBA has made federal assistance available after the record-breaking rainfall and widespread damage produced by the December 2021 Kona low,” said Luke Meyers, Administrator of the Hawai‘i Emergency Management Agency (HI-EMA).
HI-EMA worked with the counties and the Federal Emergency Management Agency to assess damages from the storm. Gov. David Y. Ige submitted a formal request for a disaster declaration, which SBA received Wednesday, Jan. 26.
The programs that were approved make available disaster loans of up to $200,000 for homeowners to repair or replace damaged or destroyed real estate, and up to $40,000 for homeowners or renters to repair or replace personal property that was damaged or destroyed. The loans have terms of up to 30 years at interest rates as low as 1.438%.
Businesses and private nonprofit organizations may borrow up to $2 million to repair or replace damaged or destroyed real estate, machinery and equipment, inventory and other business assets. The up-to-30-year loans have interest rates as low as 2.83% for businesses and 1.875% for private nonprofit organizations.
SBA can also lend additional funds to businesses and homeowners to help pay for improvements to protect, prevent or minimize the same type of disaster damage from occurring in the future.
Small businesses (including aquaculture), small agricultural cooperatives, and most private nonprofits may be eligible for Economic Injury Disaster Loans to help meet working capital needs caused by the disaster, even if the business did not suffer property damage.
“We’re committed to providing federal disaster loans swiftly and efficiently, with a customer-centric approach to help businesses and communities recover and rebuild,” said SBA Administrator Isabella Casillas in a news release Friday, Jan. 28 announcing the loans.
To assist with loan applications while protecting against the risk of COVID-19, SBA opened a Virtual Business Recovery Center and Virtual Disaster Loan Outreach Center on Monday, Jan. 31, 2022. Customer service representatives can answer questions, explain the application process and help with filing an online loan application.
The centers will operate Monday through Friday from 8 a.m. – 8 p.m. (3 a.m. – 3 p.m. in Hawai‘i) and can be reached at (800) 659-2955 or [email protected].
The deadline to apply for property damage is March 29, 2022; economic injury applications must be filed by Oct. 28, 2022.
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Department of Commerce and Consumer Affairs
Email: [email protected]