SBA & USDA Lending Solutions

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SBA Disaster Recovery Loans

In the aftermath of Hurricane Florence, many lenders will receive requests for assistance from customers during cleanup efforts.  This short article will outline some of the common experiences of Windsor’s clients from Hurricane Harvey and provide information on SBA resources available to lenders and borrowers.

Proactive Portfolio Management

Windsor recommends that lenders compile a list of all borrowers located in the affected areas (see the list of eligible counties below) and contact each borrower individually to determine what impact the storm may have had on the borrower and what assistance they might need (if any).

Once the list is narrowed down to those borrowers requesting assistance (e.g. deferment, loan modification, SBA disaster loan, etc.), lenders should conduct an in-person visit to verify the borrower’s situation and obtain additional information as necessary.  The lender should request updated financials and take pictures of all collateral supporting the loan as well as collect any other information required to evaluate assistance for the borrower.

Loan Modifications Due to a Disaster

The key objective of a loan modification is to restructure the terms of the note to enable a borrower impacted by a disaster to get back up and running. When properly documented, the SBA should not have any issues with a lender providing their client assistance so long as they properly adhere to SBA policy and prudently structure the modification to assist with their client’s temporary set-back.

Once the site visit has been conducted and updated financials as well as additional diligence have been obtained, the lender should evaluate whether or to what extent they are able to meet the borrower’s request for assistance.

If your institution needs help determining what types of assistance it can offer to your SBA borrowers, please don’t hesitate to contact Windsor’s Portfolio Management department at 312-763-3221. In addition to answering questions regarding what types of assistance are allowed by the SBA, Windsor can also assist with the preparation of the necessary SBA documentation for whichever action a lender determines reasonable for their client.

Additional SBA Resources

In addition to assisting clients with their current loans, lenders may wish to direct their clients to SBA direct lending programs aimed at providing assistance for businesses impacted by disasters. The following are some SBA resources available specifically for businesses affected by Hurricane Florence.

SBA Business Physical Disaster Loans

The SBA offers disaster loans to businesses to repair or replace property damaged by Hurricane Florence, as long the property is owned by the business. Eligible property includes real estate, inventories, supplies, machinery and equipment. Businesses of any size are eligible.

The following North Carolina counties are eligible for SBA Business Physical Disaster Loans: Beaufort, Bladen, Brunswick, Carteret, Columbus, Craven, Cumberland, Duplin, Harnett, Jones, Lenoir, New Hanover, Onslow, Pamlico, Pender, Robeson, Sampson, Wayne.

SBA Economic Injury Disaster Loans

For those businesses not directly affected by Hurricane Florence, but whose revenues are affected due to the impact of the storm on their customers, the SBA offers economic injury working capital loans. These loans are intended to assist through the disaster recovery period.

The following North Carolina counties are eligible for Economic Injury Loans only: Chatham, Greene, Hoke, Hyde, Johnston, Lee, Martin, Moore, Pitt, Scotland, Wake, Washington, Wilson.

The following South Carolina counties are eligible for Economic Injury Loans only: Dillon, Horry, Marlboro.

Additional Information to Consider on SBA and USDA Disaster Loans

Interest Rate

  • Business Physical Disaster Loans: The interest rate for business loans is 3.675% if there is no credit available elsewhere, and 7.350% if credit is available elsewhere.
  • Economic Injury Loans: The interest rate for business loans is 3.675% if there is no credit available elsewhere. Economic Injury Loans are not available for businesses that have credit available elsewhere.

Loan Terms

  • Loan terms are available up to a maximum of 30 years, but businesses with credit available elsewhere are limited to a maximum term of 7 years.

How to Apply

Businesses can apply for SBA disaster loans online at or at a local Disaster Recovery Center. The Disaster Recovery Center in North Carolina is located at:

Please contact Windsor Advantage at 312-763-3221 with any questions on SBA Disaster Loans, loan modifications, deferrals, and other borrower assistance related questions.

About Windsor Advantage, LLC

Windsor Advantage is a Lender Service Provider that provides banks and credit unions with a comprehensive outsourced SBA 7(a) and USDA lending platform.

Since 2010, Windsor has processed more than $2.0 billion in government guaranteed loans and currently services a portfolio in excess of $1.2 billion (as of August 31, 2018) for over 80 lenders nationwide.  With over 150 years of collective SBA experience, cutting-edge technology, rigid controls and consistent processes, Windsor Advantage is uniquely qualified to assist any sized lender with implementing a thoughtful and profitable government guaranteed lending initiative.

Windsor Advantage has a team of 28 professionals with offices in Chicago, Illinois; Indianapolis, Indiana; and Charleston, South Carolina.


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