The U.S. Small Business Administration (SBA) has announced the availability of low-interest federal disaster loans for private nonprofit organizations in Iowa that were affected by a severe winter storm on March 19. The declaration covers Crawford, Harrison, Monona, and Woodbury counties.
Private nonprofits offering non-critical services of a governmental nature, which suffered physical damages or financial losses due to the storm, are eligible to apply for business physical damage loans and Economic Injury Disaster Loans (EIDLs) from the SBA. Eligible organizations include food kitchens, homeless shelters, museums, libraries, community centers, schools, and colleges.
Eligible PNPs can borrow up to $2 million to repair or replace damaged real estate, machinery and equipment, inventory, and other business assets. An increase of up to 20% of verified physical damages may also be available for mitigation purposes.
EIDLs aim to cover working capital needs caused by the disaster even if there is no physical damage. These loans help pay fixed debts, payrolls, accounts payable, and other unpaid bills due to the disaster.
“SBA loans help eligible small businesses and private nonprofits cover operating expenses after a disaster," said Chris Stallings from the SBA's Office of Disaster Recovery and Resilience. "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.”
Interest rates start at 3.62% for PNPs with terms extending up to 30 years. Interest does not accrue until 12 months after the first loan disbursement. Loan amounts and terms are determined based on each applicant’s financial condition.
Applicants are encouraged to submit applications promptly as they will be prioritized by order received. Applications can be made online at sba.gov/disaster or by contacting SBA’s Customer Service Center at (800) 659-2955 or emailing disastercustomerservice@sba.gov. Telecommunications relay services are available for those who are deaf or hard of hearing via 7-1-1.
The deadline for returning physical damage applications is July 22, 2025; economic injury applications must be submitted by February 23, 2026.
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