The U.S. Small Business Administration (SBA) has introduced low interest federal disaster loans for small businesses and private nonprofit organizations in Arkansas that have suffered economic setbacks due to excessive heat and drought from August 1 to December 27, 2024.
These disaster loans cover multiple counties in Arkansas, including Ashley, Benton, Boone, Bradley, Carroll, Chicot, Cleveland, Conway, Crawford, Desha, Drew, Franklin, Garland, Johnson, Lincoln, Logan, Madison, Montgomery, Newton, Perry, Pope, Scott, Searcy, Van Buren, Washington, and Yell. The declaration also applies to Barry, Stone, and Taney counties in Missouri.
The SBA's Economic Injury Disaster Loan (EIDL) program is targeting small businesses, small agricultural cooperatives, nurseries, and private nonprofit organizations impacted financially by the disaster. Notably, agricultural producers, farmers, and ranchers are not eligible for these loans, except for small aquaculture enterprises.
The loans are intended for working capital needs resulting from the disaster. Businesses or nonprofits benefiting from these loans may use them to cover fixed debts, payroll, accounts payable, and other obligations disrupted due to the disaster, even if there was no physical damage.
"Through a declaration by the U.S. Secretary of Agriculture, SBA provides critical financial assistance to help communities recover," stated Chris Stallings, associate administrator of the Office of Disaster Recovery and Resilience at the SBA. "We’re pleased to offer loans to small businesses and private nonprofits impacted by these disasters."
Applicants may be eligible for loans up to $2 million, with interest rates set at 4% for small businesses and 3.25% for nonprofits. Loan terms can extend up to 30 years. The SBA determines loan amounts and terms based on each applicant's financial situation. Repayment and interest accrual do not begin until 12 months after the first disbursement.
Applicants can apply online via sba.gov/disaster, or reach out to the SBA’s Customer Service Center for further assistance. The deadline for submitting loan applications is November 21.
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