The U.S. Small Business Administration (SBA) is reminding private nonprofit organizations in the Virgin Islands of the upcoming deadline to apply for federal disaster loans. These loans are intended to offset economic losses caused by Tropical Storm Ernesto, which occurred from August 13-16, 2024. The deadline for applications is July 25.
The disaster declaration includes Saint Croix, Saint John, Saint Thomas, and Water Island. Under this declaration, SBA’s Economic Injury Disaster Loan (EIDL) program is available to nonprofits providing non-critical governmental services that have experienced 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 can cover fixed debts, payroll, accounts payable, and other expenses not paid because of the disaster.
“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 as low as 3.25% and terms extending up to 30 years. Interest does not accrue until one year after the first loan disbursement. Loan amounts and terms are determined based on each applicant's financial condition.
To apply online visit sba.gov/disaster or contact SBA’s Customer Service Center at (800) 659-2955 or email disastercustomerservice@sba.gov for more information on SBA disaster assistance. 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 25.