Federal disaster loan deadline approaching for those affected by Hotel Hampton fire | Lehigh County

EASTON, Pa. – The U.S. Small Business Administration (SBA) is reminding those affected by the Hotel Hampton fire of the approaching deadline to apply for low interest federal disaster loans.

Officials want all businesses, private nonprofit (PNP) organizations, homeowners and renters to be aware of the May 4 deadline for loan applications to help offset losses from physical damage caused by the massive February 20th fire in downtown Easton.

The declaration covers the Pennsylvania counties of Bucks, Carbon, Lehigh, Monroe and Northampton as well as the New Jersey county of Warren, which officials say are eligible for SBA physical damage loans and Economic Injury Disaster Loans (EIDLs.)

Eligible businesses and nonprofits may borrow up to $2 million to repair or replace disaster-damaged or destroyed real estate, machinery and equipment, inventory, and other business assets.

Additionally, eligible homeowners and renters may borrow up to $100,000 to replace or repair personal property, such as clothing, furniture, cars, and appliances, and may apply for up to $500,000 to replace or repair their primary residence.

Applicants may also be eligible for a loan increase of up to 20% of their physical damage, as verified by the SBA, for mitigation purposes. Eligible mitigation improvements include strengthening structures to protect against high wind damage, upgrading to wind rated garage doors, and installing a safe room or storm shelter to help protect property and occupants from future damage.

Interest rates are as low as 4% for small businesses, 3.625% for PNPs, and 2.875% for homeowners and renters, with terms up to 30 years. Interest does not begin to accrue, and payments are not due, until 12 months from the date of the first loan disbursement.

To apply online, visit 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.

The filing deadline to return applications for physical property damage is May 4. The deadline to return economic injury applications is Dec. 4. However, after the deadline has passed, there is a 60-day grace period in which SBA will accept applications.