The U.S. Small Business Administration (SBA) has issued a reminder to private nonprofit organizations in Alaska about the approaching deadline of March 31, 2025, to apply for federal disaster loans. These loans are intended to help offset physical damage from the severe storm and flooding that occurred from October 20-23, 2024.
The affected areas include the Bering Strait Regional Educational Attendance Area and Northwest Arctic Borough. Eligible private nonprofits providing governmental services can apply for business physical disaster loans. They may borrow up to $2 million to repair or replace damaged real estate, machinery, equipment, inventory, and other assets.
Applicants might qualify for a loan increase of up to 20% of their verified physical damages for mitigation purposes. Possible improvements include insulating pipes and attics, weather stripping doors and windows, and installing storm windows.
Chris Stallings, associate administrator of the Office of Disaster Recovery and Resilience at the SBA stated: “One distinct advantage of SBA’s disaster loan program is the opportunity to fund upgrades reducing the risk of future storm damage.” He encouraged businesses and homeowners to collaborate with contractors and mitigation professionals to enhance storm readiness using SBA’s mitigation loans.
Private nonprofits can also apply for Economic Injury Disaster Loans (EIDLs) aimed at meeting working capital needs such as fixed debts, payrolls, accounts payable, and other bills unpaid due to the disaster. EIDL assistance is available regardless of any physical property damage.
Interest rates on these loans can be as low as 3.25%, with terms extending up to 30 years. Interest does not accrue nor are payments required until one year after the first loan disbursement. The SBA determines loan amounts and terms based on each applicant's financial situation.
The SBA urges applicants to submit their applications promptly as they will be prioritized by order received. The agency remains committed to processing them efficiently.
Applications can be submitted online at sba.gov/disaster or by contacting SBA’s Customer Service Center at (800) 659-2955 or emailing disastercustomerservice@sba.gov. Telecommunications relay services are available by dialing 7-1-1 for those who are deaf or hard of hearing.
The deadline for returning applications related to physical property damage is March 31 while economic injury applications have an October 31 deadline.