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SBA details economic-injury disaster loans available to Madison County businesses after April storms
Summary
A Small Business Administration public-affairs specialist briefed Jackson City Council on economic injury disaster loans available to Madison County businesses affected by April storms, outlining eligibility, terms and mitigation funding for future resilience.
DJ Chiquela, a public affairs specialist with the Small Business Administration’s Disaster Recovery and Resiliency team, told Jackson City Council on Tuesday that Madison County businesses impacted by April storms are eligible to apply for economic injury disaster loans.
Chiquela said the loans can provide working capital to “keep the lights on, keep inventory, pay their staff,” and that the maximum loan amount available is $2,000,000. He added these loans have low fixed rates — “just under that at 3.625 for nonprofit organizations” and about 4 percent for businesses — and offer no payments and no interest for the first 12 months.
The SBA official stressed that applying is an important first step even if business owners expect an insurance payout: “When the insurance comes, if you've qualified for our loan, you can pay off the loan without penalty.” Chiquela also described federal mitigation funding that can be available when physical disaster loans are approved: mitigation can cover up to 20 percent of an eligible physical disaster loan and help strengthen structures against future events.
Chiquela said SBA partners such as Small Business Development Centers are available to help prospective applicants with the process, and he provided the agency’s application portal and hotline: sba.gov/disaster or the SBA toll-free number. He encouraged any business that believes it may qualify to apply.
The presentation preceded the council’s agenda and did not result in any formal action by the council; it was delivered as an informational briefing for businesses and residents.
Chiquela said SBA has been in the region multiple times in recent years in partnership with agencies such as FEMA and that physical disaster loans are separate from economic injury loans and can cover homeowners and renters when a county is designated a primary disaster county.
The SBA speaker left materials for the council and said SBA staff can walk applicants through insurance and loan requirements. He urged business owners and nonprofit operators who believe they experienced reduced working capital after the April storms to consider applying.
