Small businesses and private nonprofit organizations in Arkansas affected by last May's severe weather have until May 12 to apply for federal disaster loans from the U.S. Small Business Administration (SBA). These loans offer financial relief to offset economic losses caused by storms, straight-line winds, tornadoes, and flooding from May 24-27, 2024.
The SBA's Economic Injury Disaster Loan (EIDL) program is available to eligible small businesses, small agricultural cooperatives, nurseries, and nonprofits in Sharp County, Arkansas. However, agricultural producers, farmers, and ranchers are excluded unless they engage in aquaculture.
EIDLs provide working capital for needs related to the disaster and can be used to cover fixed debts, payroll, accounts payable, and other financial commitments. "SBA loans help eligible small businesses and private nonprofits 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 of 4% for small businesses and 3.25% for nonprofits, with repayment terms extending up to 30 years. Interest does not accrue, and payments are deferred for 12 months following the first loan disbursement. The SBA determines loan terms based on the financial condition of each applicant.
Applications can be submitted online via sba.gov/disaster. For more information, applicants can contact SBA’s Customer Service Center at (800) 659-2955 or email disastercustomerservice@sba.gov. For those with hearing or speech disabilities, telecommunications relay services can be accessed by dialing 7-1-1.
Completed loan applications must be submitted by the May 12 deadline.
"The U.S. Small Business Administration helps power the American dream of business ownership," according to a statement from the organization. The SBA provides resources and support for entrepreneurs and small business owners to recover from declared disasters through a network of field offices and partnerships.