The U.S. Small Business Administration (SBA) has issued a reminder to eligible private nonprofit organizations in Iowa about the upcoming deadline for applying for federal disaster loans. These loans aim to offset economic losses resulting from severe storms, tornadoes, and flooding that occurred between May 20 and May 31, 2024. The deadline for applications is March 27, 2025.
The disaster declaration encompasses several counties in Iowa, including Adair, Adams, Buena Vista, Butler, Calhoun, Cedar, Cherokee, Clay, Dallas, Franklin, Hamilton, Hancock, Harrison, Humboldt, Iowa, Jackson, Jasper, Kossuth, Marshall, Mitchell, Montgomery, Muscatine, Polk, Pottawattamie Poweshiek Shelby Story Tama and Wright.
The SBA's Economic Injury Disaster Loan (EIDL) program is available to private nonprofits that provide non-critical services of a governmental nature and have experienced financial losses directly related to the disaster. Eligible organizations include food kitchens homeless shelters museums libraries community centers schools and colleges.
These EIDLs are intended for working capital needs caused by the disaster and can be used even if there was no physical damage. They may cover fixed debts payroll accounts payable and other bills that remain unpaid due to 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."
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 due until 12 months after the first loan disbursement. Loan amounts and terms are determined based on each applicant’s financial condition.
The SBA urges applicants to submit their loan applications promptly as they will be prioritized according to receipt order with a commitment from the SBA to process them efficiently.
Applications can be submitted online at sba.gov/disaster or through contact with SBA’s Customer Service Center at (800) 659-2955 or via email at disastercustomerservice@sba.gov. Telecommunications relay services are available by dialing 7-1-1 for those who are deaf hard of hearing or have speech disabilities.
Completed loan applications must be submitted by March 27 2025.