How to Get Relief for Your Small Business after Hurricane Ida
In the devastation that ensued after Hurricane Ida, we have seen countless small businesses destroyed and struggling to recover. If you’ve been affected by the results of the storm, here are some quick resources you can use to find the relief you need for your small business.
Grants for Small Businesses affected by Hurricane Ida
Some government agencies are providing grant opportunities to businesses. FEMA has some resources for small businesses, but most of them, like the Hazard Mitigation Assistance Grant, are more suited for before the disaster, not after.
If you’re a farmer, you may be entitled to Disaster Assistance from the USDA.
At a state level, New Jersey announced a $10 million grant to small businesses, being distributed through the New Jersey Economic Development Authority.
SBA Disaster Assistance
The SBA is offering low-interest, long-term disaster relief loans to small businesses impacted by Hurricane Ida. There are several different kinds of loans for various needs:
Home and Personal Property Loans
Business Physical Disaster Loans
Economic Injury Disaster Loans
In order to apply for these disaster loans, there are three steps:
1. Apply for the loan
Your first step will be to fill out the Business Loan application, then there are some other documents you need.
To fill out the SBA Business Loan Application, here’s what you’ll need:
Contact information for all applicants
Social security numbers for all applicants
FEMA registration number
Deed or lease information
Financial information (e.g. income, account balances and monthly expenses)
Employer Identification Number (EIN) for business applicants
You’ll also need IRS Form 4605-T signed by owners of the business, your most recent federal tax return, a personal financial statement (SBA Form 413), and a list of any liabilities you currently have.
2. Get your property verified and loan processed
Next, someone from the SBA will review your credit and estimate the damages that your property has taken on. A loan officer will determine if you’re eligible for a loan, and take into account any other recoveries you’re receiving. In 2-3 weeks, they’ll reach a decision and contact you with next steps.
3. Your loan will be closed and you can access your funding.
You’ll receive some closing documents to sign, and within 5 days will receive a disbursement of your funding. If your circumstances change, your loan amount may have to be adjusted.
Mutual Aid & Crowdfunding
A decentralized approach can be a way that you can get relief for your small business after a disaster, so you might want to look into mutual aid as an option.
Mutual aid is a word that gets thrown around a lot recently, but it essentially means members of a community pitching in monetarily or in-kind to people in need without expectation of anything in return. It’s largely about building community solidarity
There might be several mutual aid organizations in your community that are helping out individuals and organizations, and potentially small businesses. We definitely encourage you to look to see any that you can get involved with, and maybe find relief from.
You might find help by starting a crowdfunding campaign to help raise funds for your rebuilding through a site such as GoFundMe. At a time where there is a great need for assistance, people across the country are wanting to help where they can, so this might be a good opportunity to raise funds to bounce back.
However, if you’re not interested in taking donations, you can still crowdfund your business’s comeback. Crowdfunding platforms such as Honeycomb Credit offer small business loans funded by your community. Not only will this allow you to raise the capital you need to rebuild when you’re ready, but it will also help you give back to your community by paying back those who invest in you.
What do you need for your small business? How can we help?
We’re listening! As a small business owner affected by the destructive hurricanes of the past year, you know best what you need. Please let us know what challenges you’re facing, and if you’re interested in getting help from Honeycomb Credit by filling out the form below.