[Excerpts from June 4 Federal Register Notice and SBA Website]
As a result of the Pre-Disaster Mitigation Loans Final Rule published in the Federal Register October 7, 2002, the Small Business Administration is announcing the availability of Pre-Disaster Mitigation Loans. Effective June 16, 2003, small businesses may apply for low interest, fixed rate loans for the purpose of implementing mitigation measures that will protect their commercial real property (building) or leasehold improvements or contents from disaster related damage. The filing period for small businesses to apply for Pre-Disaster Mitigation Loans ends on July 16, 2003. The interest rate for eligible small businesses is 2.953 percent. Loans of up to $50,000 per fiscal year (FY03, FY04) will be awarded on a first-come, first-served basis.

In addition to other types of protection measures, loan funds may also be used to relocate businesses that are in Special Flood Hazard Areas to other locations within the same community.

As part of the application process, a local or state hazard mitigation official must certify that the proposed measure conforms to the priorities and goals of the mitigation plan for the community. After November 1, 2003, a business must be located in a community with a FEMA-approved mitigation plan to be eligible for this program.

Federal Register Notice
SBA Web Page (including application documents)
FEMA Web Page

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