SBA Disaster Loan Deadline Approaching
The deadline for private nonprofit organizations in Arkansas to apply for federal disaster loans from the Small Business Administration (SBA) is approaching. Francisco Sanchez Jr., assistant administrator for the SBA’s Office of Disaster Recovery and Resilience, reminded organizations of the Aug. 14, 2024 deadline. The loans address economic damage caused by severe storms, straight-line winds and tornadoes that occurred on June 25-26, 2023. Private nonprofit organizations that provide services of a government nature are Eligible for this assistance.
Sanchez said eligible private nonprofits of any size can apply for Economic Injury Disaster Loans (EIDL) from the Small Business Administration for up to $2 million. These loans help meet working capital needs resulting from a disaster. “Economic Injury Disaster Loans can be used to pay fixed debts, payroll, accounts payable, and other bills that cannot be paid due to the impact of the disaster,” Sanchez said. “Economic Injury Disaster Assistance is available regardless of whether or not a private nonprofit has suffered any property damage.”
These low-interest federal disaster loans are available in Arkansas, Faulkner, Lonoke and Poinsett counties. The interest rate on these loans is 2.375 percent with terms of up to 30 years. Loan amounts and terms are determined by the Small Business Administration based on each applicant’s financial situation.
Interest on these loans does not begin accruing until 12 months after the first disbursement of the disaster loan. SBA disaster loans begin to be repaid 12 months after the first disbursement. This gives nonprofits some time to stabilize their operations before they need to begin repaying the loan.
Applicants can apply online and find additional information about disaster assistance at SBA.gov/disaster. For more information about SBA disaster assistance, applicants can call the SBA Customer Service Center at (800) 659-2955 or email disastercustomerservice@sba.govFor people who are deaf, hard of hearing, or have a speech disability, calling 7-1-1 provides access to communications relay services.
The assistance provided by the Small Business Administration is essential to the recovery and continuity of operations of nonprofit organizations affected by the disaster. By providing these loans, the Small Business Administration ensures that these organizations can continue to provide services to their communities without interruption.
It is important for eligible nonprofits to take advantage of this opportunity before the deadline. The process is simple, and securing a disaster loan from the SBA can make a huge difference in managing the financial impact of such a severe event. Nonprofits are encouraged to review their financial needs and apply as soon as possible to ensure they receive the support they need.
By meeting working capital needs through these loans, the SBA helps stabilize nonprofit operations, allowing them to focus on their core mission of serving the community. The impact of severe storms, high winds, and hurricanes can be devastating, but with the support of SBA loans, nonprofits have a lifeline to help them navigate the recovery process.
Federal disaster loans from the Small Business Administration are a critical resource for private nonprofits in Arkansas affected by severe weather events in June 2023. With the deadline quickly approaching, eligible organizations should move quickly to apply for this financial assistance and secure the support they need to continue their important work.
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