The U.S. Small Business Administration (SBA) is reminding businesses, nonprofits, and residents in Oklahoma of the approaching May 27 deadline to apply for federal disaster loans. These loans are available to offset losses from physical damage caused by severe weather events, including storms, tornadoes, and flooding that occurred between November 2 and November 3, 2024.
The disaster declaration encompasses the Oklahoma counties of Canadian, Cleveland, Kingfisher, Lincoln, Logan, Oklahoma, and Pottawatomie.
Small businesses and nonprofits can apply for business physical disaster loans with a borrowing limit of up to $2 million. These funds can be used to repair or replace damaged or destroyed real estate, machinery, equipment, inventory, and other business assets.
Homeowners and renters are eligible for loans to replace or repair personal property, with caps of up to $100,000. Homeowners may request up to $500,000 to repair their primary residence. There is also potential eligibility for a loan increase of up to 20% of physical damage, verified by the SBA, for mitigation purposes. Possible improvements include reinforcing structures against high wind damage, upgrading to wind-rated garage doors, and installing safe rooms or storm shelters.
Chris Stallings, associate administrator of the Office of Disaster Recovery and Resilience at the SBA, stated, “One distinct advantage of SBA’s disaster loan program is the opportunity to fund upgrades reducing the risk of future storm damage.” He encouraged businesses and homeowners to "work with contractors and mitigation professionals to improve their storm readiness while taking advantage of SBA’s physical damage loans.”
The SBA’s Economic Injury Disaster Loan (EIDL) program is also available for qualifying small businesses, small agricultural cooperatives, nurseries, and private nonprofit organizations impacted by financial losses due to the November weather events. The SBA cannot provide disaster loans to agricultural producers, farmers, or ranchers, except for aquaculture enterprises.
Interest rates for these loans can be as low as 4% for small businesses, 3.625% for nonprofits, and 2.563% for homeowners and renters, with terms extending up to 30 years. Interest accrual and payments are deferred for 12 months from the first disbursement date. Loan amounts and terms are determined by the SBA based on each applicant’s financial situation.
Applications can be submitted online at sba.gov/disaster. Additional information is available by contacting the SBA’s Customer Service Center. The deadline for returning physical damage applications is May 27.