The U.S. Small Business Administration (SBA) has announced the availability of low-interest federal disaster loans for Kansas small businesses, private nonprofits, and residents affected by severe storms and a tornado on May 18. This follows a disaster declaration issued after a request from Governor Laura Kelly on May 28.
The disaster declaration applies to several counties in Kansas, including Gove, Graham, Lane, Logan, Ness, Scott, Sheridan, Thomas, and Trego. Eligible businesses and nonprofits can apply for business physical disaster loans up to $2 million to repair or replace damaged assets such as real estate and machinery.
Homeowners can apply for loans up to $500,000 to repair or replace their primary residences. Additionally, homeowners and renters may borrow up to $100,000 for personal property replacement or repair. Applicants might qualify for a loan increase of up to 20% of their verified physical damages for mitigation improvements like insulating pipes or installing storm windows.
The SBA's Economic Injury Disaster Loan (EIDL) program is also available for eligible small businesses and private nonprofit organizations impacted financially by the disaster. However, it does not extend to agricultural producers except aquaculture enterprises. EIDLs aim to cover working capital needs caused by the disaster even if no physical damage occurred.
Interest rates are set at 4% for businesses, 3.62% for nonprofits, and 2.81% for homeowners and renters with terms up to 30 years. Payments are deferred until one year after the first loan disbursement date.
Chris Stallings from the Office of Disaster Recovery and Resilience at the SBA emphasized the importance of Disaster Loan Outreach Centers: “When disasters strike, SBA’s Disaster Loan Outreach Centers play a vital role in helping small businesses and their communities recover.”
From June 3 onwards, SBA customer service representatives will be available at these centers in Gove County to assist applicants with their applications and provide information on recovery programs. The center operates Monday through Friday from 8:00 a.m. to 4:30 p.m., closing on June 25.
Applicants can apply online at sba.gov/disaster or seek further assistance via phone or email with deadlines set on July 28 for physical damage applications and March 2 next year for economic injury applications.