The U.S. Small Business Administration is making low-interest federal disaster loans available to Rota residents, businesses, and private nonprofits following a presidential disaster declaration issued Aug. 4 for damage caused by Super Typhoon Bavi. The storm struck the Commonwealth of the Northern Mariana Islands from July 4–12, causing widespread physical and economic losses.
The declaration covers Rota for both physical disaster loans and Economic Injury Disaster Loans, according to the SBA’s Office of Disaster Recovery and Resilience. Adjacent areas — the Northern Islands, Saipan, and Tinian — are eligible only for economic injury loans.
Businesses and private nonprofits may borrow up to $2 million to repair or replace damaged real estate, equipment, inventory, and other assets. Homeowners may apply for up to $500,000 to repair or replace their primary residence, while homeowners and renters may borrow up to $100,000 for personal property losses, including clothing, furniture, vehicles, and appliances.
Applicants may also qualify for a loan increase of up to 20% of verified physical damage for mitigation projects such as wind-resistant garage doors, structural strengthening, or installing a safe room or storm shelter.
Economic Injury Disaster Loans are available to small businesses, small agricultural cooperatives, and private nonprofits — including faith-based organizations — that suffered financial losses tied directly to the disaster. These loans may be used for working capital needs such as payroll, fixed debts, accounts payable, and other bills that could not be paid due to the storm’s impacts.
“Through a presidential declaration, SBA provides financial assistance to help communities recover,” said Chris Stallings, associate administrator of the SBA’s Office of Disaster Recovery and Resilience. “We offer disaster loans to homeowners, renters, businesses, and private nonprofits affected by the disaster.”
Interest rates start as low as 4% for businesses, 3.625% for private nonprofits, and 2.875% for homeowners and renters, with terms up to 30 years. Interest does not begin to accrue, and payments are not required until 12 months after the first loan disbursement.
SBA officials said one-on-one assistance will be available at Federal-State Disaster Recovery Centers once they open in the affected areas. Applicants may apply online at sba.gov/disaster or call the SBA Customer Service Center at (800) 659-2955 for more information.
