The U.S. Small Business Administration (SBA) is reminding eligible private nonprofit organizations in Kansas of the upcoming deadline to apply for low-interest federal disaster loans. The loans aim to alleviate economic losses caused by severe weather events, including storms, straight-line winds, tornadoes, and flooding that took place on May 19, 2024.
This disaster declaration encompasses multiple counties in Kansas, specifically Barton, Ellsworth, Harvey, Hodgeman, Lincoln, Morris, Ottawa, Pawnee, Reno, Rush, Russell, Stafford, Wabaunsee, and Wyandotte.
Eligible for these loans under the SBA's Economic Injury Disaster Loan (EIDL) program are non-critical private nonprofits that provide services typically associated with governmental functions. This includes organizations such as food kitchens, homeless shelters, museums, libraries, community centers, schools, and colleges.
These EIDLs can be utilized to meet working capital needs arising from the disaster, even if the nonprofits did not suffer any physical damage. The loans can help cover fixed debts, payroll, accounts payable, and other bills that went unpaid due to the disaster impact.
"SBA loans help eligible small businesses and private nonprofits cover operating expenses after a disaster, which is crucial for their recovery," stated 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."
Loans may reach $2 million, with interest rates as low as 3.25% and repayment terms of up to 30 years. No interest will accrue, and payments are postponed for 12 months following the disbursement. Loan amounts and conditions are determined based on the applicant's financial status.
Applicants are encouraged to submit their applications without delay, as they will be considered in the order of receipt. The SBA is committed to processing these applications as efficiently as possible.
Applications can be submitted online at sba.gov/disaster. Additional information on SBA disaster assistance is available by contacting the SBA Customer Service Center at (800) 659-2955 or emailing disastercustomerservice@sba.gov. Telecommunications relay services can be accessed by dialing 7-1-1.
The deadline for submitting economic injury applications is May 20.