SBA loan approval reaches over $40M

As of Monday, the U.S. Small Business Administration has already approved a combined total of 721 disaster loans—for both homes and businesses—amounting to $43,632,400.

Of that amount, loans arising from Super Typhoon Yutu total $41,895,400, while Typhoon Mangkhut approvals reached $1,737,000.

According to SBA public information officer Cynthia Cowell, the SBA has already approved a total of 667 home and business/EID loans for Yutu. For home loans alone, 625 applications, amounting to $36,997,000, have been approved, she said. Yutu destroyed a lot of homes, mostly in the southern villages of Saipan.

Cowell cited these numbers in emphasizing that the SBA has been a viable partner in the CNMI’s recovery from Typhoon Mangkhut on Rota and Super Typhoon Yutu on Saipan and Tinian.

The SBA is a federal government agency that offers low-interest loans to local entrepreneurs, small business owners, individuals, and other non-profit organizations, especially those who were affected by natural disasters.

Cowell said the U.S. Department of the Treasury helped fund the money for the loans. “There’s no limit on the amount for our programs since this money comes directly from the Treasury Department. There’s a limit to how much they can use to employ personnel and keep our operations here but as far as money to the people who need it, there’s no allocation.”

She said that EID loans are not only for businesses that suffered physical damage, but those which also suffered economically. “This is a loan for businesses that may not have any physical damage but they were affected economically since the tourists were not here. So, they are not making the usual money that they make in this season of the year.”

“They can apply for EID loans, which are for businesses that experienced a downturn in the usual revenue that they have been making due to the typhoon or any disaster. These loans would provide working capital to keep their business afloat until it picks up again”

Cowell said that SBA usually goes where the Federal Emergency Management Agency goes, especially in recovery efforts after every disaster. She added that they can refer people that were not eligible for their loans back to FEMA, which has a lot of other programs to help victims of natural disasters.

“There’s the disaster unemployment insurance for people who lost their jobs because of the storm. It is not a lot of money but it will help keep you on your feet. There are a lot of information about which agency is here to help you. There are a lot of people and organizations that have come here to help. And we want to make sure everybody is fed, housed, and ready to recover.”