The U.S. Small Business Administration (SBA) is urging eligible businesses, nonprofits, and residents in Oklahoma to apply for federal disaster loans by the May 27 deadline. The loans are intended to help offset physical damage losses from severe storms, tornadoes, and straight-line winds that occurred from March 3-4.
The affected counties in Oklahoma include Coal, Garvin, Hughes, Johnston, McClain, Murray, Pontotoc, Pottawatomie, and Seminole.
Small businesses and nonprofits can apply for physical disaster loans, borrowing up to $2 million to repair or replace damaged real estate, machinery, equipment, inventory, and other assets. Homeowners and renters may borrow up to $100,000 for personal property replacement or repair, which includes clothing, furniture, cars, and appliances. Homeowners can also apply to borrow up to $500,000 for primary residence repair or replacement.
Eligible applicants may qualify for up to a 20% loan increase for mitigation improvements to protect against future storm damage, as verified by the SBA.
Chris Stallings, associate administrator of the Office of Disaster Recovery and Resilience at the SBA, highlighted the program’s advantage by stating, “One distinct advantage of SBA’s disaster loan program is the opportunity to fund upgrades reducing the risk of future storm damage. I encourage businesses and homeowners to work with contractors and mitigation professionals to improve their storm readiness while taking advantage of SBA’s physical damage loans.”
Additionally, the SBA’s Economic Injury Disaster Loan (EIDL) program is available for small businesses, small agricultural cooperatives, nurseries, and private nonprofit organizations facing financial losses due to the disaster. However, this does not extend to agricultural producers, farmers, or ranchers, with the exception of aquaculture enterprises.
Interest rates on these loans may be as low as 4% for small businesses, 3.625% for nonprofits, and 2.75% for homeowners and renters. Loan terms can extend up to 30 years, with delayed interest accrual and payment requirements for 12 months following the first loan disbursement. Loan amounts and terms are determined based on the financial condition of each applicant.
Applications can be submitted online at sba.gov/disaster or by contacting the SBA Customer Service Center. The deadline for physical damage applications is May 27.