The U.S. Small Business Administration (SBA) has announced the availability of low-interest federal disaster loans for small businesses, private nonprofits, and residents in Mississippi affected by severe storms and tornadoes from April 2-6. This announcement follows a disaster declaration issued in response to a request from Governor Tate Reeves on May 6.
The declaration covers Benton, DeSoto, Lafayette, Marshall, Panola, Tate, Tunica, and Union counties in Mississippi as well as Fayette and Shelby counties in Tennessee. These areas are eligible for both physical damage loans and Economic Injury Disaster Loans (EIDLs) from the SBA.
Small businesses and private nonprofits can apply for business physical disaster loans up to $2 million to repair or replace damaged or destroyed real estate, machinery, equipment, inventory, and other business assets. Homeowners may apply for up to $500,000 to repair or replace their primary residence. Renters and homeowners can also borrow up to $100,000 for personal property such as clothing, furniture, cars, and appliances.
Applicants may qualify for a loan increase of up to 20% of their physical damage costs verified by the SBA for mitigation purposes. Eligible improvements include strengthening structures against high winds and installing 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 individuals to collaborate with contractors and mitigation professionals while using SBA's mitigation loans.
The EIDL program is available for small businesses, small agricultural cooperatives, and private nonprofit organizations with financial losses due to the disaster. The SBA does not provide disaster loans to agricultural producers except for small aquaculture enterprises. EIDLs cover working capital needs caused by the disaster even if no physical damage occurred.
Interest rates are set at 4% for small businesses, 3.62% for private nonprofits, and 2.75% for homeowners and renters with terms up to 30 years. Interest does not accrue nor payments due until one year after the first loan disbursement. Loan amounts depend on each applicant’s financial condition.
Starting Monday, May 12th, SBA customer service representatives will be available at Disaster Loan Outreach Centers in Marshall County at Slayden Baptist Church in Lamar; Tate County; Union County at Old National Guard Armory in New Albany; among others—to assist with applications.
Disaster survivors are advised not to wait for insurance settlements before applying as SBA can provide a loan based on total loss estimates within its limits if insurance proceeds will be used towards repayment later.
Applications can be submitted online via sba.gov/disaster or through contacting SBA’s Customer Service Center at (800) 659-2955 or emailing disastercustomerservice@sba.gov. For telecommunications relay services dial 7-1-1.
Deadlines: July 7th for physical property damage applications; February 9th next year regarding economic injury applications.