The U.S. Small Business Administration (SBA) has issued a reminder for private nonprofit (PNP) organizations in South Dakota to apply for low-interest federal disaster loans by May 15. These loans are intended to mitigate economic losses due to the severe storms, straight-line winds, and flooding that occurred between June 16 and July 8, 2024.
This disaster declaration affects the counties of Aurora, Bennett, Bon Homme, Brule, Buffalo, Charles Mix, Clay, Davison, Douglas, Gregory, Hand, Hanson, Hutchinson, Jackson, Lake, Lincoln, McCook, Miner, Minnehaha, Moody, Sanborn, Tripp, Turner, Union, and Yankton. Under the declaration, the SBA's Economic Injury Disaster Loan (EIDL) program is accessible to PNPs that provide non-critical services of a governmental nature and have suffered financial losses directly related to the disaster. Eligible non-critical PNPs include food kitchens, homeless shelters, museums, libraries, community centers, schools, and colleges.
These loans are available to meet working capital needs resulting from the disaster, even if there was no physical damage to the PNP. The loans can cover fixed debts, payroll, accounts payable, and other financial obligations unmet due to the disaster.
Chris Stallings, associate administrator of the Office of Disaster Recovery and Resilience at the SBA, stated, "SBA loans help eligible small businesses and private nonprofits cover operating expenses after a disaster, which is crucial for their recovery. 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."
Loans can be as high as $2 million, with interest rates starting at 3.25% and terms extending up to 30 years. Borrowers do not have to make payments, and interest does not accrue until 12 months after the initial loan disbursement. The SBA determines the loan amounts and terms based on the financial condition of each applicant.
The SBA is urging applicants to submit their loan applications promptly, noting that they will be processed in the order received. The SBA affirms its commitment to handling applications efficiently.
Applications can be submitted online at sba.gov/disaster. Additional information can be obtained by calling the SBA’s Customer Service Center at (800) 659-2955 or emailing disastercustomerservice@sba.gov. Those with disabilities affecting communication should dial 7-1-1 to use telecommunications relay services. Completed applications are due by May 15.