SBA reminds Iowa businesses of July deadline for storm-related loan applications

SBA reminds Iowa businesses of July deadline for storm-related loan applications

Economics
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John Miller Deputy Associate Administrator for the Office of Capital Access (OCA) | www.sba.gov

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The U.S. Small Business Administration (SBA) has issued a reminder to eligible small businesses, nonprofits, and residents in Iowa regarding the approaching deadline for applying for federal disaster loans. These loans are intended to mitigate economic losses from severe weather events, including storms, flooding, straight-line winds, and tornadoes that occurred between June 16 and July 23, 2024. The deadline for applications is July 1, 2025.

This assistance applies specifically to Harrison County in Iowa. Through the SBA's Economic Injury Disaster Loan (EIDL) program, small businesses, agricultural cooperatives, nurseries, and private nonprofit organizations (PNPs) can access financial support if they have been affected by the disaster. However, traditional agricultural producers such as farmers or ranchers are not eligible unless they are involved in aquaculture.

EIDLs are designed to address working capital needs resulting from the disaster and can be utilized even if no physical damage was sustained by the business or PNP. These loans can cover fixed debts, payroll expenses, accounts payable, and other bills that were left unpaid due to the disaster.

Chris Stallings, associate administrator of the Office of Disaster Recovery and Resilience at the SBA stated: "SBA loans help eligible small businesses and private nonprofits cover operating expenses after a disaster, which is crucial for their recovery." He added that these loans play a significant role in sustaining local economies post-disaster.

Loan amounts may reach up to $2 million with interest rates starting at 4% for small businesses and 3.25% for PNPs. The repayment terms can extend up to 30 years. Interest accrual and payments begin one year after the first loan disbursement date. The specific loan amounts and terms are determined based on each applicant’s financial situation.

Interested parties can apply online via sba.gov/disaster or contact SBA’s Customer Service Center at (800) 659-2955 for more information about SBA disaster assistance options. Those who are deaf or hard of hearing can use telecommunications relay services by dialing 7-1-1.

Completed loan applications must be submitted by July 1.

The U.S. Small Business Administration supports American entrepreneurs by providing resources necessary for starting, growing, expanding businesses or recovering from declared disasters through its extensive network of field offices and partnerships with various organizations.

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