The U.S. Small Business Administration (SBA) has announced that low-interest federal disaster loans are now available for small businesses and private nonprofit organizations in Virginia. These loans are intended for organizations that experienced economic losses due to severe storms, leading to a power outage and a boil water advisory from January 5 to 11. On April 9, the SBA issued an administrative declaration regarding this economic injury disaster.
The affected areas include the primary counties of Goochland, Hanover, Henrico, and Richmond City, as well as the neighboring counties of Caroline, Charles City, Chesterfield, Cumberland, Fluvanna, King William, Louisa, New Kent, Powhatan, and Spotsylvania in Virginia.
The Economic Injury Disaster Loan (EIDL) program, offered by the SBA, is available to qualifying small businesses, small agricultural cooperatives, nurseries, and private nonprofit organizations that faced financial losses due to the disaster. However, agricultural producers, farmers, and ranchers, except for those in aquaculture, are not eligible for these loans.
These loans aim to address working capital needs resulting from the disaster and are available even if the business or nonprofit did not experience physical damage. They can help cover fixed debts, payroll, accounts payable, and other expenses unmet due to the disaster.
Chris Stallings, associate administrator of the Office of Disaster Recovery and Resilience at the SBA, expressed the importance of these loans: "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."
The loans can reach up to $2 million, with interest rates starting as low as 4% for small businesses and 3.625% for private nonprofits. Loan terms can extend up to 30 years. The interest only begins to accumulate, and payments are deferred until 12 months from the first disbursement. The SBA determines loan amounts and terms considering each applicant's financial state.
Business owners and nonprofits should not delay their loan applications while awaiting insurance settlements. If the extent of insurance or other compensations is unknown, the SBA can issue a low-interest disaster loan for the total loss within loan limits, given that insurance proceeds are used to reduce or repay the loan.
Applications can be submitted online at sba.gov/disaster. Alternatively, applicants can contact the SBA Customer Service Center at (800) 659-2955 or email disastercustomerservice@sba.gov. People who are deaf, hard of hearing, or have a speech disability can use telecommunications relay services by dialing 7-1-1.
The deadline to submit economic injury applications is January 9, 2026.