The United States Small Business Administration (SBA) has approved more than $3 million in disaster recovery loans for those impacted by Typhoon Halong.
The federal agency offers loans to support small organizations across the country, but also has a branch to support those recovering from disasters.
On Dec. 11, the SBA announced that it had already approved nearly $3.7 million in loans to restore typhoon-damaged homes for 63 individuals. That’s according to Jason Chudy, who works in the SBA’s Office of Disaster Recovery and Resilience.
Chudy said that the loan program operates differently from typical bank loans. It aims to approve loans to people who may not have great credit scores or who don’t have insurance.
“If you go to a regular bank and apply for a loan, the worse credit that you've got, the higher the interest rate you're going to pay,” Chudy explained. “But it's the exact opposite with [the] Small Business Administration. If you have credit available elsewhere, you're going to end up paying more for that loan. But if you generally have less credit score or don't have as much credit, you're going to get that lower rate.”
The program is separate from the individual financial assistance offered by the Federal Emergency Management Agency (FEMA) or from insurance. The SBA offers loans that must eventually be paid back, and they can accrue interest over time.
Chudy said that the loans SBA offers have a lower interest rate than average bank loans, close to 3%, and don’t start accruing interest until a year after the loan has been taken out.
SBA’s disaster assistance loans require collateral — something to be claimed if the individual is unable to pay the loan, like a house or asset — for loans over $50,000. Loans under that amount do not require collateral.
The SBA is currently offering disaster assistance loans in amounts up to $500,000 for property damage. In some cases, applicants are eligible to receive an additional loan of $100,000 to replace household items.
“And what's very unique for this Alaska situation is we actually approved loans for subsistence camps,” Chudy explained. “So things like camp gear, hunting and fishing and cooking gear, even vehicles. If you use a vehicle, like a boat or a snowmachine to get back and forth between your subsistence camp, those are eligible if they were destroyed.”
Chudy said that actual structures other than houses, including fish camps and sheds, cannot be covered in the loans.
It may be difficult to pay the loan back, especially after a disaster. Chudy said that the SBA offers long pay periods, as much as 30 years, and aims to approve individuals it believes can eventually pay the loans back.
“When it comes down to the payments, we hope that everybody gets a loan amount that they're able to repay,” Chudy said. “And we give them a good enough time period where it won't be a huge, hopefully won't be a huge financial burden on them.”
The SBA has set up an outreach office in Bethel City Hall through Dec. 19 to help individuals apply for loans to help rebuild homes and replace lost property related to the typhoon.
The SBA has extended its application deadline for loans to Feb. 22, 2026 following FEMA’s individual assistance deadline.
There is no cost to apply for an SBA loan and no commitment to take the money if approved.
For those interested in applying for an SBA disaster assistance loan, the Bethel pop up office is running from 8:00 a.m. to 5:00 p.m. weekdays through Dec. 19, with the possibility of another pop up in January 2026, according to Chudy.
Chudy said to show up with a valid ID and a list of damages.
Individuals impacted by storm damages can also apply online at lending.sba.gov or by calling 1-800-659-2955.
