Businesses and residents in the state affected by recent storms could get some financial assistance from the federal government.

The Small Business Administration (SBA)  has announced that low-interest federal disaster loans are now available to California businesses and residents as a result of President Joe Biden’s major disaster declaration.

Biden’s declaration covers the counties of Merced, Sacramento, and Santa Cruz due to severe winter storms, flooding, landslides and mudslides that began in late December 2022.

Businesses of all sizes and private nonprofit organizations may borrow up to $2 million to repair or replace damaged or destroyed real estate, machinery, equipment, inventory and other business assets.

The SBA is also lending additional funds to businesses and homeowners to help with the cost of improvements to protect, prevent or minimize the same type of disaster damage from occurring in the future.

“With President Biden’s declaration, SBA is working closely with FEMA and our state and local officials on the ground to deliver expedient disaster recovery loans and support that will aid Californians impacted by these severe and devastating winter storms, flooding and mudslides,” said SBA Administrator Isabella Casillas Guzman.

For small business, small agricultural cooperatives, small businesses engaged in aquaculture, and most private nonprofit organizations of any size, the SBA offers Economic Injury Disaster Loans to help meet working capital needs caused by the disaster. The Economic Injury assistance is available to businesses regardless of any property damage.

Disaster loans ups to $200,000 are available to homeowners to repair or replace damaged or destroyed real estate. Homeowners and renters are eligible for up to $40,000 to repair or replace damaged or destroyed personal property.

The interest rates can go as low as 3.305% for businesses, 2.375% for private nonprofit organizations, and 2.313% 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.

In December, Guzman announced a policy change granting 12 months of no payments and 0% interest. This pertains to all disasters declared on or after Sept. 21, 2022 through Sept. 30,2023, which includes Hurricane Fiona and Hurricane Ian.

To be considered for disaster assistance, contact the Federal Emergency Management Agency at www.disasterassistance.gov .