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SBA outlines disaster loan options and mitigation funds for Lancaster flood recovery
Summary
At the Oct. 6 Lancaster City Council meeting, DJ Jakala of the U.S. Small Business Administration detailed physical-damage loans, Economic Injury Disaster Loans (EIDL), mitigation funding, eligibility and deadlines for residents and businesses affected by July 2025 flooding.
DJ Jakala, a public affairs specialist with the U.S. Small Business Administration's Office of Disaster Recovery and Resiliency, told Lancaster City Council on Oct. 6 that federal disaster loans are available to help residents and businesses recover from the July 26–28, 2025 floods.
Jakala summarized the two main loan tracks: physical damage loans to repair or replace disaster-damaged property and Economic Injury Disaster Loans (EIDL) to help businesses meet ordinary financial obligations after the disaster. Jakala said businesses and nonprofits may borrow up to $2 million for physical damage and that homeowners may borrow up to $500,000. She described EIDL as working capital to “keep the lights on and the doors open,” noting EIDL applicants have a later deadline that extends into spring 2026.
The SBA presenter described mitigation assistance that can be added to physical-damage loans to reduce future hazard risk. Homeowners and businesses who qualify for a physical damage loan may apply for up to 20% of their qualified loan amount in additional mitigation funds, with a two-year window to request the increase.
Jakala reviewed interest-rate and term guidance from the agency and emphasized borrower protections the SBA offers, including no required payments and no interest during the first 12 months after a loan is approved and signed. She also thanked the Lancaster community for cooperation during recovery outreach.
The SBA fact sheet provided to council lists application portals and the agency’s Customer Service Center (1-800-659-2955) for assistance, and encouraged affected parties to apply even if insurance or other recovery amounts have not been finalized.
Next steps: residents and business owners in Fairfield County and contiguous counties should check eligibility and deadlines on the SBA disaster website and contact the SBA customer service line for application help.
