The U.S. Small Business Administration (SBA) has announced the availability of low-interest federal disaster loans for small businesses, private nonprofits, and residents in Indiana affected by severe storms and tornadoes on May 16. This follows a disaster declaration issued after a request from Governor Mike Braun on May 30.
The affected counties include Brown, Greene, Jackson, Lawrence, Monroe, Morgan, and Owen. These areas are eligible for both physical damage loans and Economic Injury Disaster Loans (EIDLs) from the SBA.
Small businesses and private nonprofits can apply for business physical disaster loans up to $2 million to repair or replace damaged real estate, machinery, equipment, inventory, and other assets. Homeowners may borrow up to $500,000 to repair or replace their primary residence, while renters can apply for up to $100,000 for personal property such as clothing and furniture.
Applicants may qualify for a loan increase of up to 20% of their verified physical damage for mitigation purposes. Eligible improvements include strengthening structures against high winds and installing storm shelters.
Chris Stallings, associate administrator of the Office of Disaster Recovery and Resilience at the SBA said: "One distinct advantage of SBA’s disaster loan program is the opportunity to fund upgrades reducing the risk of future storm damage."
The EIDL program is available to small businesses and private nonprofit organizations with financial losses directly related to the disaster. These loans address working capital needs even if no physical damage occurred.
Interest rates are set at 4% for small businesses, 3.625% for PNPs, and 2.813% for homeowners and renters with terms up to 30 years. Payments begin 12 months after the first loan disbursement.
Starting June 3, SBA customer service representatives will be available at the Disaster Loan Outreach Center in Monroe County to assist with applications until its closure on June 18.
Disaster survivors are encouraged not to wait for insurance settlements before applying for a loan. The filing deadline for physical property damage applications is July 29, 2025; economic injury applications are due by March 2, 2026.
For more information or assistance with applications visit sba.gov/disaster or contact SBA’s Customer Service Center at (800) 659-2955.