In response to a presidential disaster declaration issued on May 21, 2025, the U.S. Small Business Administration (SBA) has announced low-interest disaster loans for Mississippi businesses and residents affected by severe storms, straight-line winds, tornadoes, and flooding that occurred on March 14-15.
The declaration covers several counties including Covington, Grenada, Issaquena, Itawamba, Jefferson Davis, Leflore, Marion, Montgomery, Pike, Smith, and Walthall. These areas are eligible for both physical damage loans and Economic Injury Disaster Loans (EIDLs) from the SBA. Adjacent counties in Mississippi and neighboring states like Alabama, Arkansas, and Louisiana are eligible only for EIDLs.
Businesses can apply for business physical disaster loans up to $2 million to repair or replace damaged assets. Homeowners and renters can apply for loans up to $100,000 for personal property or up to $500,000 for primary residences. Applicants may also qualify for a loan increase of up to 20% of their physical damages verified by the SBA for mitigation improvements such as strengthening structures against high winds.
Interest rates are set at 4% for small businesses, 3.625% for private nonprofit organizations (PNPs), and 2.75% for homeowners and renters with terms up to 30 years. Payments are deferred until 12 months after the first loan disbursement.
“SBA’s Business Recovery Centers have consistently proven their value to business owners following a disaster,” said Chris Stallings of the Office of Disaster Recovery and Resilience at the SBA. He encouraged business owners to visit these centers where specialists will assist them through the application process.
Starting May 28, SBA representatives will be available at the Business Recovery Center in Walthall County to assist applicants. The center is located at Walthall County Armory in Tylertown with specific operating hours until its permanent closure on July 21.
Survivors should not delay applying for a disaster loan while waiting on insurance settlements. The SBA can provide a loan covering total losses if insurance proceeds are used to repay it later.
Changes in FEMA’s Sequence of Delivery now encourage survivors to apply simultaneously for FEMA grants and SBA loans. While FEMA grants cover immediate needs not paid by insurance or other sources, SBA loans aim at long-term recovery.
Applications can be submitted online via SBA.gov/disaster or through contact with SBA's Customer Service Center. Deadlines are July 21, 2025, for physical property damage applications and February 23, 2026, for economic injury applications.