In response to a Presidential disaster declaration issued on May 8, the U.S. Small Business Administration (SBA) has announced the availability of low-interest federal disaster loans for small businesses, private nonprofit organizations, and residents in Arkansas affected by severe storms and tornadoes that occurred on March 14-15.
The disaster declaration encompasses the Arkansas counties of Greene, Hot Spring, Independence, Izard, Jackson, Lawrence, Randolph, Sharp, and Stone. Businesses and nonprofits can apply for business physical disaster loans with borrowing limits up to $2 million to repair or replace damaged real estate, machinery and equipment, inventory, and other assets.
Homeowners and renters may apply for home and personal property loans. Homeowners can borrow up to $500,000 to repair or replace their primary residence while both homeowners and renters can borrow up to $100,000 for personal property such as clothing and furniture.
Applicants might qualify for a loan increase of up to 20% of their physical damages verified by the SBA for mitigation purposes. Eligible improvements include insulating pipes or installing storm windows to safeguard against future disasters.
The SBA’s Economic Injury Disaster Loan (EIDL) program is available for eligible small businesses and private nonprofits suffering financial losses directly related to this disaster. However, agricultural producers are not eligible unless they are aquaculture enterprises. EIDLs address working capital needs caused by the disaster even if no physical damage occurred.
Chris Stallings from 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.”
Interest rates are set at 4% for small businesses, 3.62% for PNPs, and 2.75% for homeowners with terms extending up to 30 years. Interest accrual begins after one year from the first loan disbursement date.
Federal-State Disaster Recovery Centers will provide one-on-one assistance once operational in affected areas. More information about these centers is available through the SBA Customer Service Center at (800) 659-2955.
Applications can be submitted online via sba.gov/disaster or inquiries directed via email at disastercustomerservice@sba.gov. Telecommunications relay services are accessible by dialing 7-1-1.