The U.S. Small Business Administration (SBA) has announced the availability of low-interest federal disaster loans for eligible businesses, nonprofits, and residents in Alaska. This assistance aims to mitigate the physical damage caused by severe storms and flooding that occurred from October 20 to 23, 2024. The application deadline is set for May 12.
The disaster declaration extends to the Northwest Arctic Borough, allowing businesses and nonprofits to apply for physical disaster loans. These entities may borrow up to $2 million to repair or replace damaged real estate, machinery, inventory, and other business assets. Homeowners and renters can apply for loans up to $100,000 to repair personal property, with homeowners eligible for loans up to $500,000 to repair primary residences.
Additionally, applicants may receive a loan increase of up to 20% for mitigation improvements such as strengthening structures against wind damage 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," noted Chris Stallings, Associate Administrator of the Office of Disaster Recovery and Resilience at the SBA.
The SBA's Economic Injury Disaster Loan program is also available to eligible small businesses and nonprofit organizations affected financially by the disaster, though agricultural producers, farmers, and ranchers remain ineligible, except for those involved in aquaculture. Loan amounts can reach up to $2 million, with varying interest rates: 4% for businesses, 3.25% for nonprofits, and 2.813% for homeowners and renters. These loans have terms up to 30 years and defer interest and payments until 12 months after the initial disbursement.
Interested applicants can apply online at sba.gov/disaster, call SBA’s Customer Service Center at (800) 659-2955, or email disastercustomerservice@sba.gov. For those requiring telecommunications relay services, dialing 7-1-1 is recommended. The deadline for returning physical damage applications is May 12, and for economic injury applications, it is December 15.
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