SBA Offers Disaster Loans to Businesses and Residents Affected by Tropical Storm Debby in Pennsylvania

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The U.S. Small Business Administration (SBA) announced that low-interest disaster loans are now available to businesses and residents in Pennsylvania following a Presidential disaster declaration for damages caused by Tropical Storm Debby on August 9-10.

This disaster declaration allows eligible individuals and businesses in specific counties to apply for financial assistance to recover and rebuild.

Affected Areas

The disaster declaration covers the counties of Lycoming, Potter, Tioga, and Union, which are eligible for both Physical and Economic Injury Disaster Loans (EIDLs). Adjacent counties, including Bradford, Cameron, Centre, Clinton, Columbia, McKean, Mifflin, Montour, Northumberland, Snyder, and Sullivan in Pennsylvania, as well as Allegany, Chemung, and Steuben in New York, are eligible to apply only for SBA Economic Injury Disaster Loans.

Types of Loans Available

The SBA is offering several types of disaster loans, including:

  • Businesses and Nonprofits: Businesses and private nonprofit organizations of any size may borrow up to $2 million to repair or replace disaster-damaged or destroyed real estate, machinery, equipment, inventory, and other assets.
  • Small Businesses: Small businesses, agricultural cooperatives, aquaculture businesses, and most private nonprofit organizations may also be eligible for EIDLs to help meet working capital needs caused by the disaster. Importantly, these loans are available regardless of whether physical property damage occurred.
  • Homeowners and Renters: Disaster loans of up to $500,000 are available to homeowners to repair or replace damaged or destroyed real estate. Homeowners and renters can also borrow up to $100,000 to repair or replace personal property damaged in the storm.

Loan Terms and Conditions

Interest rates for the loans are as low as 4% for businesses, 3.25% for nonprofit organizations, and 2.813% for homeowners and renters. Loan terms can extend up to 30 years, depending on the borrower’s financial situation. Furthermore, interest does not begin to accrue, and no monthly payments are required, until 12 months after the initial loan disbursement.

The SBA sets loan amounts and terms based on each applicant’s financial condition. These loans are designed to assist in long-term recovery by helping individuals and businesses restore their property to pre-disaster conditions.

Additional Loan Benefits for Mitigation

In addition to covering the costs of repairs, the SBA disaster loan program offers an opportunity to build back with mitigation improvements that can help prevent future damage. Applicants may be eligible for a loan amount increase of up to 20% of the physical damages verified by the SBA. This increase can be used for mitigation projects such as safe rooms, storm shelters, sump pumps, French drains, or retaining walls.

Application Process and Deadlines

Disaster survivors are encouraged to apply for an SBA disaster loan even if they have not yet settled with their insurance company. The SBA can provide loans for the total loss, up to its loan limits, with the condition that insurance proceeds are used to reduce or repay the loan. Survivors should also apply for FEMA grants alongside SBA loans to maximize their recovery resources. FEMA grants cover necessary expenses and needs not covered by insurance or other sources, while SBA loans focus on long-term recovery.

Applications for physical property damage must be submitted by November 12, 2024, and the deadline for economic injury applications is June 11, 2025.

For more information on the SBA disaster loan program or to apply online, visit www.sba.gov/disaster. Applicants can also call the SBA Customer Service Center at (800) 659-2955 or email disastercustomerservice@sba.gov. For individuals who are deaf, hard of hearing, or have speech disabilities, 7-1-1 relay services are available.


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