The U.S. Small Business Administration (SBA) has issued a reminder to small businesses and private nonprofit organizations in Kansas about the upcoming deadline to apply for federal disaster loans. These loans are intended to help offset economic losses caused by severe weather events, including storms, straight-line winds, tornadoes, and flooding that occurred on May 19, 2024.
The disaster declaration specifically affects Harvey County in Kansas. The SBA's Economic Injury Disaster Loan (EIDL) program is available under this declaration for eligible small businesses, agricultural cooperatives, nurseries, and private nonprofits that have experienced financial setbacks due to the disaster. However, agricultural producers such as farmers or ranchers are not eligible unless they are involved in aquaculture enterprises.
EIDLs aim to address working capital needs arising from the disaster. They can be used for expenses like fixed debts, payroll, accounts payable, and other bills that remain unpaid because of the adverse weather conditions. Physical damage is not a prerequisite for eligibility.
"SBA loans help eligible small businesses and private nonprofits cover operating expenses after a disaster, which is crucial for their recovery," stated 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."
Eligible applicants may receive up to $2 million with interest rates as low as 4% for small businesses and 3.25% for private nonprofits. The loan terms can extend up to 30 years. Interest does not accrue nor are payments required until one year after the first loan disbursement date. The specific loan amounts and terms depend on each applicant's financial situation.
Applications can be submitted online at sba.gov/disaster or through contact with SBA’s Customer Service Center via phone or email. Assistance is also available through telecommunications relay services for those who need it.
All applications must be submitted by July 7.