The U.S. Small Business Administration (SBA) has issued a reminder to small businesses and private nonprofit organizations in Kansas about the approaching deadline for applying for federal disaster loans. These loans are intended to mitigate economic losses resulting from severe weather events, including storms, straight-line winds, tornadoes, and flooding that occurred between April 25 and April 30, 2024.
The affected areas include the Kansas counties of Allen, Bourbon, and Linn. The SBA's Economic Injury Disaster Loan (EIDL) program is available to eligible small businesses, agricultural cooperatives, nurseries, and private nonprofits that have experienced financial setbacks due to these disasters. However, agricultural producers such as farmers or ranchers are not eligible unless they operate aquaculture enterprises.
EIDLs provide working capital to address needs arising from the disaster even if no physical damage was sustained by the business or organization. These funds can be used for various operational expenses like fixed debts, payrolls, accounts payable, and other bills that remain unpaid due to the disaster.
Chris Stallings of the SBA stated: "SBA loans help eligible small businesses and private nonprofits cover operating expenses after a disaster, which is crucial for their recovery." He further emphasized that these loans play an essential role in supporting local economies post-disaster.
Eligible applicants can borrow 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 accrual starting only after one year from the first loan disbursement date. The loan amounts and terms depend on each applicant’s financial situation.
Applications can be submitted online at sba.gov/disaster or through contact with SBA’s Customer Service Center at (800) 659-2955 or via email at disastercustomerservice@sba.gov. Telecommunications relay services are available by dialing 7-1-1 for those who are deaf or hard of hearing.
All applications must be submitted by June 11.