The U.S. Small Business Administration (SBA) has announced the availability of low-interest federal disaster loans for private nonprofit organizations in Arkansas affected by severe storms, tornadoes, and flooding that occurred from April 2 to April 22. The disaster declaration encompasses numerous counties across the state, including Clark, Clay, Craighead, Cross, Dallas, Desha, Fulton, Greene, Hempstead, Hot Spring, Izard, Jackson, Lafayette, Lawrence, Lee, Little River, Lonoke, Marion, Miller, Monroe, Montgomery, Nevada, Newton, Pike Poinsett Prairie Pulaski Randolph Saline Scott Searcy Sevier Sharp St. Francis Stone and Woodruff.
Under this declaration from the SBA PNPs offering non-critical services of a governmental nature that have suffered physical damages or financial losses directly related to the disaster are eligible to apply for business physical damage loans and Economic Injury Disaster Loans (EIDLs). Eligible organizations include food kitchens homeless shelters museums libraries community centers schools and colleges.
These nonprofits may borrow up to $2 million to repair or replace damaged or destroyed real estate machinery equipment inventory and other business assets. Additionally applicants may qualify for a loan increase of up to 20% of their physical damage as verified by the SBA for mitigation purposes.
Economic Injury Disaster Loans are available for working capital needs caused by the disaster even if no physical damage was sustained. These loans can be used to cover fixed debts payroll accounts payable and other bills that could not be paid due to the disaster.
"SBA loans help eligible small businesses and private nonprofits cover operating expenses after a disaster which is crucial for their recovery," said Chris Stallings associate administrator of the Office of Disaster Recovery and Resilience at the SBA. "These loans not only help business owners get back on their feet but also play a key role in sustaining local economies in the aftermath of a disaster."
Interest rates are as low as 3.62% with terms extending up to 30 years. Interest does not begin accruing nor are payments due until 12 months from the date of the first loan disbursement. Loan amounts and terms will be determined based on each applicant’s financial condition.
The SBA urges applicants to submit their applications promptly as they will be prioritized according to when they are received with a commitment from the SBA to process them efficiently.
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 hard of hearing or have a speech disability.
The deadline for returning physical damage applications is July 21 2025 while economic injury applications must be returned by February 23 2026.