In response to a Presidential disaster declaration issued on May 21, the U.S. Small Business Administration (SBA) has announced the availability of low-interest federal disaster loans for Arkansas small businesses, private nonprofit organizations, and residents affected by severe storms, tornadoes, and flooding that occurred from April 2 to April 22.
The disaster declaration includes the Arkansas counties of Clark, Clay, Craighead, Crittenden, Desha, Fulton, Hot Spring, Jackson, Miller, Ouachita, Pulaski, Randolph, Saline, Sharp, St. Francis and White.
Eligible businesses and nonprofits can apply for business physical disaster loans up to $2 million to repair or replace damaged real estate and other assets. Homeowners and renters may apply for home and personal property loans up to $100,000 for personal property replacement or repair. Additionally, homeowners can apply for up to $500,000 to address damage to their primary residence.
Applicants may qualify for a loan increase of up to 20% of their verified physical damages from the SBA for mitigation purposes. Mitigation improvements could include insulating pipes and installing storm windows.
The SBA’s Economic Injury Disaster Loan (EIDL) program is available for eligible small businesses and nonprofits impacted financially by this disaster. EIDLs provide working capital needs caused by the disaster even if there was no physical damage.
“One distinct advantage of SBA’s disaster loan program is the opportunity to fund upgrades reducing the risk of future storm damage,” said Chris Stallings from the Office of Disaster Recovery and Resilience at the SBA. “I encourage businesses and homeowners to work with contractors and mitigation professionals.”
Interest rates are as low as 4% for small businesses, 3.62% for PNPs and 2.75% for homeowners with terms up to 30 years. Payments are deferred until 12 months after the first disbursement.
Federal-State Disaster Recovery Centers will offer one-on-one assistance when they open in affected areas. More information is available through SBA's Customer Service Center at (800) 659-2955 or online at sba.gov/disaster.
The deadline for physical damage applications is July 21, 2025; economic injury applications must be submitted by February 23, 2026.