The U.S. Small Business Administration (SBA) has announced that small businesses, nonprofits, and residents in Kansas affected by the severe storm and tornado on May 18 have until July 28 to apply for low-interest federal disaster loans. This announcement applies to those in the counties of Gove, Graham, Lane, Logan, Ness, Scott, Sheridan, Thomas, and Trego.
Eligible small businesses and nonprofits can apply for business physical disaster loans of up to $2 million to repair or replace damaged or destroyed real estate and other assets. Homeowners may borrow up to $500,000 for primary residence repairs or replacements. Renters and homeowners can also apply for personal property loans up to $100,000.
The SBA offers an opportunity for a loan increase of up to 20% of the verified physical damage amount for mitigation purposes. Eligible improvements include strengthening structures against high winds and installing storm shelters.
Chris Stallings from the SBA stated: “One distinct advantage of SBA’s disaster loan program is the opportunity to fund upgrades reducing the risk of future storm damage.” He encouraged working with professionals on storm readiness while utilizing these loans.
The Economic Injury Disaster Loan (EIDL) program is available for eligible small businesses and private nonprofit organizations facing financial losses due to this disaster. However, agricultural producers are generally not eligible unless they are aquaculture enterprises.
Interest rates start at 4% for small businesses, 3.62% for nonprofits, and 2.81% for homeowners and renters with terms extending up to 30 years. Payments begin one year after the first loan disbursement based on each applicant's financial condition.
Applications can be submitted online at sba.gov/disaster or through SBA’s Customer Service Center at (800) 659-2955. The deadline for returning physical damage applications is July 28.