Iowa nonprofits urged to apply for SBA loans before April deadline

Iowa nonprofits urged to apply for SBA loans before April deadline

Economics
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Arthur Plews SBA Chief of Staff | www.sba.go

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The U.S. Small Business Administration (SBA) is reminding private nonprofit organizations in Iowa of the approaching deadline to apply for federal disaster loans. These loans are intended to offset economic losses from severe storms and tornadoes that occurred on April 26-27, 2024. The application deadline is April 21, 2025.

The disaster declaration includes the counties of Clarke, Crawford, Harrison, Pottawattamie, Ringgold, Shelby, and Union. Under this declaration, the SBA's Economic Injury Disaster Loan (EIDL) program is available to nonprofits providing non-critical governmental services impacted by financial losses due to the disaster. Eligible organizations include food kitchens, homeless shelters, museums, libraries, community centers, schools, and colleges.

These EIDLs can be used for working capital needs resulting from the disaster even if no physical damage was incurred. They may cover fixed debts, payrolls, accounts payable, and other bills unpaid 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% and terms extending up to 30 years. Interest does not accrue nor are payments due until 12 months after the first loan disbursement. The SBA determines loan amounts and terms based on each applicant’s financial condition.

Applications can be submitted online at sba.gov/disaster or through 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 or hard of hearing.

Completed applications must be submitted by April 21.

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