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The U.S. Small Business Administration is offering low-interest federal disaster loans for working capital to small businesses economically impacted by the Highway 1 collapse and closure in Monterey County that began March 30, SBA’s Administrator Isabella Casillas Guzman announced today. SBA acted under its own authority to declare a disaster following a request received from Gov. Newsom on April 26.

The disaster declaration makes SBA assistance available in Fresno, Kings, Monterey, San Benito, San Luis Obispo and Santa Cruz counties.

“SBA’s mission-driven team stands ready to help California’s small businesses impacted by the Highway 1 collapse and closure,” said Administrator Guzman. “We’re committed to providing federal disaster loans swiftly and efficiently, with a customer-centric approach to help these businesses.”

“Low-interest federal disaster loans are available to help meet working capital needs caused by this disaster,” said Francisco Sánchez Jr., associate administrator for the Office of Disaster Recovery and Resilience at the Small Business Administration. “Friday, May 10, SBA customer service representatives will be available at the following virtual Business Recovery Center to answer questions about SBA’s disaster loan program, explain the application process and help each business owner complete their application,” Sánchez continued. The virtual center will be open on the days and times indicated below. No appointment is necessary.

VIRTUAL BUSINESS RECOVERY CENTER
Opens at 8 a.m., Friday, May 10
Monday – Friday
8:00 a.m. – 4:30 p.m.
(916) 735-1160
FOCWAssistance@sba.gov

“Small nonfarm businesses, small agricultural cooperatives, small businesses engaged in aquaculture and most private nonprofit organizations of any size may qualify for Economic Injury Disaster Loans of up to $2 million to help meet financial obligations and operating expenses which could have been met had the disaster not occurred,” said Sánchez.

“These loans may be used to pay fixed debts, payroll, accounts payable and other bills that can’t be paid because of the disaster’s impact. Disaster loans can provide vital economic assistance to small businesses to help overcome the temporary loss of revenue they are experiencing,” Sánchez added.

Eligibility is based on the financial impact of the disaster only and not on any actual property damage. These loans have an interest rate of 4 percent for small businesses and 3.25 percent for private nonprofit organizations with terms up to 30 years and are restricted to small businesses without the financial ability to offset the adverse impact without hardship.

Interest does not begin to accrue until 12 months from the date of the first disaster loan disbursement. SBA disaster loan repayment begins 12 months from the date of the first disbursement.

The Central California Regional Small Business Development Center is offering free, personalized counseling to help affected businesses in their recovery. Businesses may contact the center at  casbdc@ucmerced.edu  or by calling (888) 842-3415 to request a consultation. Visitors are encouraged to call first for an appointment.

Applicants may apply online and receive additional disaster assistance information at SBA.gov/disaster. Applicants may also call SBA’s Customer Service Center at (800) 659-2955 or email disastercustomerservice@sba.gov for more information on SBA disaster assistance. For people who are deaf, hard of hearing, or have a speech disability, please dial 7-1-1 to access telecommunications relay services.

The deadline to apply for economic injury is Feb. 10, 2025.