The U.S. Small Business Administration (SBA) is reminding private nonprofit organizations in Minnesota that the deadline to apply for federal disaster loans is approaching. Eligible nonprofits have until March 28, 2025, to seek assistance for economic losses caused by severe storms and flooding from June 16 through July 4, 2024.
This disaster declaration affects numerous counties across Minnesota, including Blue Earth, Brown, Carver, Cass, Cook, Cottonwood, Dodge, Faribault, Fillmore, Freeborn, Goodhue, Houston, Itasca, Jackson, Lake Le Sueur Martin McLeod Mower Murray Nicollet Nobles Pipestone Redwood Renville Rice Rock Sibley St. Louis Steele Wabasha Waseca Watonwan and Winona.
The SBA's Economic Injury Disaster Loan (EIDL) program is available to nonprofit organizations providing non-critical governmental services that experienced financial losses due to the disaster. Eligible entities include food kitchens homeless shelters museums libraries community centers schools and colleges.
These loans can be used for working capital needs even if there was no physical damage. They may cover fixed debts payroll accounts payable and other bills not paid because of the disaster.
"SBA loans help eligible small businesses cover operating expenses after a disaster which is crucial for their recovery," said Chris Stallings associate administrator of the Office of Disaster Recovery and Resilience at the SBA. "These loans not only help business owners get back on their feet but also play a key role in sustaining local economies in the aftermath of a disaster."
Loan amounts can reach up to $2 million with interest rates as low as 3.25% for nonprofits with terms extending up to 30 years. Interest does not accrue nor are payments required until one year after the first loan disbursement date. The SBA determines loan terms based on each applicant's financial situation.
To apply visit sba.gov/disaster or contact SBA’s Customer Service Center at (800) 659-2955 or email disastercustomerservice@sba.gov. For those who are deaf hard of hearing or have speech disabilities dial 7-1-1 for telecommunications relay services.
The deadline for economic injury applications is March 28 2025.