The U.S. Small Business Administration (SBA) is reminding private nonprofit organizations in Tennessee of the upcoming deadline to apply for federal disaster loans following Tropical Storm Helene. These low-interest loans are intended to offset economic losses caused by the storm, which occurred on September 26, 2024. The deadline for applications is July 9.
The disaster declaration covers several counties in Tennessee: Carter, Claiborne, Cocke, Grainger, Greene, Hamblen, Hawkins, Jefferson, Johnson, Sullivan, Unicoi, and Washington. Under this declaration, the SBA's Economic Injury Disaster Loan (EIDL) program is available to nonprofits providing non-critical services of a governmental nature that have suffered financial losses due to the storm. Eligible organizations include food kitchens, homeless shelters, museums, libraries, community centers, schools and colleges.
EIDLs are designed to meet working capital needs resulting from the disaster and can be used even if no physical damage was sustained. The loans may cover fixed debts, payroll expenses, accounts payable and other bills that could not be paid because of 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.”
Loan amounts can reach up to $2 million with interest rates as low as 3.25% and terms extending up to 30 years. Interest does not accrue nor are payments due until 12 months after the first loan disbursement. The SBA determines loan amounts and terms based on each applicant’s financial condition.
Applications can be submitted online at sba.gov/disaster or by contacting SBA’s Customer Service Center at (800) 659-2955 or via email at disastercustomerservice@sba.gov. For individuals who are deaf or hard of hearing or have a speech disability, telecommunications relay services can be accessed by dialing 7-1-1.
The final date for submitting economic injury applications is July 9.