The U.S. Small Business Administration (SBA) has issued a reminder to small businesses and private nonprofit organizations in Virginia regarding the upcoming deadline to apply for federal disaster loans. These loans are intended to mitigate economic losses caused by Tropical Storm Helene, which occurred from September 25 to October 3, 2024. The deadline for applications is July 1.
The disaster declaration includes numerous counties across Virginia, as well as areas in Kentucky, North Carolina, Tennessee, and West Virginia. Under this declaration, the SBA's Economic Injury Disaster Loan (EIDL) program is accessible to small businesses, small agricultural cooperatives, nurseries, and private nonprofits that have experienced financial losses due to the storm. However, it should be noted that agricultural producers such as farmers or ranchers are not eligible unless they operate small aquaculture enterprises.
EIDLs can be used for working capital needs resulting from the disaster. They are available even if there was no physical damage to the business or nonprofit organization. The funds may cover fixed debts, payroll expenses, accounts payable, and other bills that could not be paid because of the storm.
"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."
Loan amounts can reach up to $2 million with interest rates set at 4% for small businesses and 3.25% for private nonprofit organizations. Terms extend up to 30 years with no interest accruing or payments due until one year after the first loan disbursement. Loan amounts and terms are determined based on each applicant's financial condition.
Applications can be submitted online at sba.gov/disaster. For further assistance or information about SBA disaster aid, applicants may contact SBA’s Customer Service Center via phone at (800) 659-2955 or email at disastercustomerservice@sba.gov. Telecommunications relay services are available by dialing 7-1-1 for those who are deaf or hard of hearing.
The deadline for submitting economic injury applications is July 1, 2025.
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