The U.S. Small Business Administration (SBA) is reminding private nonprofit organizations in Arkansas of the approaching July 21 deadline to apply for federal disaster loans. These loans are intended to help offset physical damage caused by severe storms, tornadoes, and flooding that occurred from April 2 to April 22.
The disaster declaration affects numerous counties in Arkansas, including Clark, Clay, Craighead, Cross, Dallas, Desha, Fulton, Greene, Hempstead, Hot Spring, Izard, Jackson, Lafayette, Lawrence, Lee, Little River, Lonoke, Marion, Miller, Monroe, Montgomery, Nevada, Newton, Pike, Poinsett, Prairie, Pulaski, Randolph, Saline, Scott Searcy Sevier Sharp St. Francis Stone and Woodruff.
Private nonprofits offering non-critical governmental services can apply for business physical damage loans under this declaration. Eligible organizations may borrow up to $2 million to repair or replace damaged real estate and other business assets.
Applicants might also qualify for a loan increase of up to 20% of their verified physical damages for mitigation purposes. Possible improvements include insulating pipes and attics or installing storm windows to prevent future damage.
Chris Stallings from the SBA's Office of Disaster Recovery and Resilience highlighted the benefits of the program: "One distinct advantage of SBA’s disaster loan program is the opportunity to fund upgrades reducing the risk of future storm damage."
Economic Injury Disaster Loans (EIDLs) are also available for nonprofits needing assistance with working capital needs like payroll or accounts payable. This aid is available regardless of whether any physical property damage was sustained.
Interest rates on these loans can be as low as 3.62%, with terms extending up to 30 years. Payments do not start until a year after the first loan disbursement.
For more information or to apply online visit sba.gov/disaster. The deadline for returning physical damage applications is July 22 while economic injury applications are due by February 23 next year.