The U.S. Small Business Administration (SBA) has issued a reminder to private nonprofit organizations in Louisiana about the upcoming deadline to apply for federal disaster loans. These loans are intended to mitigate economic losses resulting from Hurricane Francine, which struck between September 9 and 12, 2024. The application deadline is set for June 23.
The disaster declaration encompasses several Louisiana parishes including Ascension, Assumption, East Baton Rouge, East Feliciana, Iberville, Jefferson, Lafourche, Livingston, Orleans, Plaquemines, St. Bernard, St. Charles, St. Helena, St. James, St. John the Baptist, St. Martin, St. Mary, St. Tammany, Tangipahoa, Terrebonne, Washington and West Feliciana.
Under this declaration, the SBA's Economic Injury Disaster Loan (EIDL) program is accessible to private nonprofits offering non-critical governmental services that have incurred financial setbacks due to the hurricane. Eligible organizations include food kitchens, homeless shelters, museums, libraries, community centers as well as educational institutions like schools and colleges.
These EIDLs cater to working capital needs caused by the disaster and can be availed even if there was no physical damage sustained by the organization. They can be used for paying fixed debts such as payroll and accounts payable that remain unpaid due to the hurricane's impact.
Chris Stallings of the SBA highlighted the importance of these loans: "SBA loans help eligible small businesses and private nonprofits cover operating expenses after a disaster which is crucial for their recovery." He further noted that these financial aids not only support business owners in resuming operations but also contribute significantly to local economic stability post-disaster.
The loan amount may reach up to $2 million with interest rates starting at 3.25% and terms extending up to 30 years. Notably, interest does not accrue until 12 months after the first disbursement of funds.
Applicants are encouraged to submit their applications promptly as they will be processed in order of receipt. The SBA remains dedicated to handling these applications efficiently.
Interested applicants can apply online or gather more information by visiting sba.gov/disaster or contacting SBA’s Customer Service Center at (800) 659-2955 or via email at disastercustomerservice@sba.gov.
Completed loan applications must be submitted by June 23.
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