The Small Business Administration has announced that low-interest federal disaster loans are now available to Hawaii businesses and residents as a result of President Biden’s major disaster declaration, U.S. Small Business Administration’s Administrator Isabella Casillas Guzman announced. 

The SBA has expanded the current disaster declaration for the Maui wildfires to include Economic Injury Disaster Loans (EIDLs) for businesses on the Big Island, Kauai, and Oahu. To accommodate business owners on all the islands, we have opened Business Recovery Centers (BRCs) on O’ahu, Kauai, and now, the Big Island.

Disaster loans up to $500,000 are available to homeowners to repair or replace damaged or destroyed real estate. Homeowners and renters are eligible for up to $100,000 to repair or replace damaged or destroyed personal property, including personal vehicles. 

Interest rates can be as low as 4 percent for businesses, 2.375 percent for private nonprofit organizations, and 2.5 percent for homeowners and renters with terms up to 30 years. Loan amounts and terms are set by SBA and are based on each applicant’s financial condition. 

As a result of SBA policy improvements, 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.

To be considered for all forms of disaster assistance, survivors must first contact the Federal Emergency Management Agency at www.disasterassistance.gov. As soon as Federal-State Disaster Recovery Centers open throughout the affected area, SBA will provide one-on-one assistance to disaster loan applicants. Additional information and details on the location of disaster recovery centers are available by calling the SBA Customer Service Center at (800) 659-2955.

Application Filing Deadlines:
Physical Damage: October 10, 2023
Economic Injury: May 10, 2024

Hardship Accommodation Plan:
SBA is offering a Hardship Accommodation Plan for borrowers experiencing short-term financial challenges. Borrowers eligible for this plan may make reduced payments for six months. Interest will continue to accrue, which may increase (or create) a balloon payment due at the end of the loan term.