The U.S. Small Business Administration (SBA) has issued a reminder to small businesses and private nonprofit organizations in Iowa about the May 27 deadline for applying for federal disaster loans. These loans aim to cover economic losses from severe weather conditions, including storms, tornadoes, and flooding, which occurred from May 20-31, 2024.
The SBA’s Economic Injury Disaster Loan (EIDL) program is available to eligible businesses in the Iowa counties of Harrison and Tama. The assistance is intended for small businesses, small agricultural cooperatives, nurseries, and private nonprofits directly impacted financially by these disasters. However, the SBA does not provide disaster loans to agricultural producers, farmers, or ranchers—except aquaculture enterprises.
EIDLs target working capital needs caused by disasters and can be used even if entities did not suffer physical damage. The loans cover fixed debts, payroll, accounts payable, and other expenses unmet due to the disaster's impact.
“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.”
Loans can reach up to $2 million, with interest rates as low as 4% for small businesses and 3.25% for private nonprofits. Loan terms can extend up to 30 years, with interest accruals and payments deferred for 12 months from the initial disbursement. The loan amounts and terms are determined by the applicant’s financial status.
Interested parties can apply online at sba.gov/disaster. Additional information is available through SBA’s Customer Service Center by calling (800) 659-2955 or emailing disastercustomerservice@sba.gov. Telecommunications relay services are accessible by dialing 7-1-1 for those who are deaf, hard of hearing, or have a speech disability.
Loan applications must be submitted by May 27.