On today’s episode of the SBA Update, we’re joined by leaders from the U.S. Small Business Administration to outline how their agency helps small businesses, homeowners, and renters recover from disasters, emphasizing the importance of preparation, funding, and long-term community resilience.
Tyler Teresa, Southeast Regional Administrator, and Chris Stallings, Associate Administrator for the Office of Disaster Recovery and Resilience, detailed the SBA’s programs that provide both immediate relief and long-term recovery for those affected by natural and man-made disasters.
“When disaster strikes… we want to bring solutions.” – Chris Stallings
The SBA provides long-term disaster loans directly to businesses (up to $2 million), homeowners (up to $500,000), and renters (up to $100,000) at low interest rates. Loans can be extended up to 30 years, and up to 20% additional funding is available for mitigation measures such as storm-proofing homes and businesses. By acting as the lender, the SBA streamlines the process, eliminating the need for banks as intermediaries.
Partnering with FEMA
SBA disaster efforts are closely coordinated with FEMA, the federal agency responsible for emergency management, which handles short-term relief. However, SBA also operates independently in areas without a presidential disaster declaration. For instance, last year, the SBA handled 428 disaster declarations; to date, the SBA has managed 393.
Further, preparation is a key theme for SBA leaders. Teresa highlights “blue sky” planning, which he advises business owners to back up documents in the cloud, maintain insurance and financial records, and establish partnerships with other businesses for temporary space or equipment if their operations are disrupted. Establishing SBA-backed lines of credit ahead of disasters can also provide immediate funding when it is needed most. Stallings asserts, “The question, what now, is much easier to answer when you’ve got time to think than when you have to think.”
Supporting beyond disasters
Beyond disaster recovery, the SBA supports small business growth and entrepreneurship. Loans are designed to make it easier for small businesses to access capital with reasonable interest rates and extended terms. Teresa highlighted resources like Small Business Development Centers (SBDCs), which provide consulting and business planning assistance to help entrepreneurs secure funding and successfully launch new ventures.
“We want every small business owner to know they are not alone. It takes a team to be successful, so the SBA should be a part of everyone’s team.” - Tyler Teresa.
“Small businesses are the backbone of our communities,” Teresa said. Stallings echoed the message of preparation and support: “Plan early. Take advantage of your blue sky days. When disaster strikes, we’re here to provide solutions and guidance to help you recover.”
For more information on SBA programs, loans, and disaster preparedness resources, visit sba.gov.
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