The U.S. Small Business Administration (SBA) has announced the availability of low-interest federal disaster loans for businesses, nonprofits, and residents in Alaska affected by a severe storm and flooding from October 20-23, 2024. This follows a disaster declaration issued after a request from Governor Mike Dunleavy on February 27, 2025.
The declaration covers the Northwest Arctic Borough in Alaska. Businesses and nonprofits can apply for business physical disaster loans up to $2 million to repair or replace damaged real estate, machinery, equipment, inventory, and other assets. Homeowners and renters may apply for loans up to $100,000 for personal property repairs or replacements like clothing and furniture. Homeowners can also seek up to $500,000 for primary residence repairs.
Applicants might qualify for a loan increase of up to 20% of their verified physical damages for mitigation purposes. Eligible improvements include strengthening structures against high winds or installing storm shelters.
“One distinct advantage of SBA’s disaster loan program is the opportunity to fund upgrades reducing the risk of future storm damage,” said Chris Stallings, associate administrator of the Office of Disaster Recovery and Resilience at the SBA. “I encourage businesses and homeowners to work with contractors and mitigation professionals to improve their storm readiness while taking advantage of SBA’s physical damage loans.”
The Economic Injury Disaster Loan (EIDL) program is available for small businesses, agricultural cooperatives, nurseries, and private nonprofit organizations with financial losses due to this disaster. The SBA cannot provide disaster loans to agricultural producers except aquaculture enterprises.
EIDLs are intended for working capital needs caused by the disaster even if no physical damage occurred. They can cover fixed debts, payrolls, accounts payable, and other unpaid bills due to the disaster.
Loan amounts can reach $2 million with interest rates as low as 4% for small businesses, 3.25% for nonprofits, and 2.81% for homeowners and renters over terms up to 30 years. Interest does not accrue nor are payments due until one year after initial disbursement.
Starting Monday, March 17th, SBA customer service representatives will be available at a Virtual Disaster Loan Outreach Center from Monday through Friday between 8:00 a.m. – 4:30 p.m., Pacific Time.
Applications should be submitted promptly as they will be prioritized by order received. To apply online visit sba.gov/disaster or contact SBA’s Customer Service Center at (800) 659-2955 or email disastercustomerservice@sba.gov.
Deadlines are May 12th for physical damage applications and December 15th for economic injury applications.