SAIPAN — The U.S. Small Business Administration has opened a Business Recovery Center at the One Stop Business Permitting Center on Capitol Hill, giving Super Typhoon Sinlaku-affected businesses a dedicated place to apply for federal disaster loans and complete the process in person.
The center opened Tuesday and is meant to speed businesses through the recovery process, SBA Public Affairs Specialist Raenada Mason said during an interview with NMI News Service. She was joined by fellow Public Affairs Specialist Natalie Butz, who arrived on island last week to assist with outreach.
Mason said the center functions as a one-stop location where businesses can get help with application submission, eligibility certificates, loan reconsideration, and reacceptance, with two customer service representatives on site and a private room for applicants. The business hours are 8:30 a.m. to 4 p.m., Monday through Friday.
The SBA also continues to operate at the Saipan Chamber of Commerce office on the second floor of Marianas Business Plaza, open 9 a.m. to 5 p.m. weekdays, and at the survivor recovery center at the multipurpose building. Two representatives are also stationed at the youth center on Tinian, and the agency plans to extend outreach to Rota.
As of the day before the interview, the SBA had reached $7.4 million in approvals, Mason said, though she noted that less than 1 percent of applicants so far have been businesses. She urged more businesses to seek assistance, either online at sba.gov/disaster or in person with a representative.
Butz said many businesses do not realize they may qualify for economic injury disaster loans even if they did not sustain physical damage. She said it typically takes six to nine months after a disaster for the full economic impact to be felt, through lost or damaged inventory, a decline in tourism, or the inability to make payroll. Economic injury loans can provide working capital to cover necessary business expenses, she said.
The specialists outlined the loan terms. Interest rates are as low as 2.875 percent for homeowners and renters, fixed at 3.625 percent for nonprofits, and as low as 4 percent for businesses, with terms up to 30 years. No interest accrues and no payments are due for the first year, and there is no prepayment penalty. Businesses can borrow up to $2 million, homeowners up to $500,000 plus an additional $100,000 for personal property, and renters up to $100,000.
Butz said borrowers can also receive up to 20 percent of total verified losses for mitigation measures to protect against future disasters, such as typhoon shutters or solar panels, and that mitigation can be requested up to two years after approval.
Eligibility covers physical damage and economic injury from the storms between April 11 and April 18 anywhere in the declared area across the CNMI. Mason said eligible applicants include sole proprietors, 1099 contractors, and aquaculture operations, not only corporations and LLCs. SBA sends its own loss verifiers to assess damage directly and covers losses not compensated by insurance or FEMA.
The deadline to apply for physical damage is June 22. The deadline for economic injury loans is in January. Butz said applicants do not need every answer before applying and encouraged businesses to get their application in the door before the physical-damage deadline, noting that approval carries no obligation to take the loan.
Watch the full interview on the NMI News Service Facebook page or YouTube.
