The U.S. Small Business Administration (SBA) has announced the availability of low-interest federal disaster loans for small businesses, private nonprofits, and residents in Kansas affected by severe storms and flooding from June 3-7. This decision follows a request from Governor Laura Kelly on June 26.
The disaster declaration covers several counties in Kansas: Butler, Chase, Cowley, Elk, Greenwood, Harvey, Marion, Sedgwick, and Sumner. Businesses and nonprofits can apply for physical disaster loans up to $2 million to repair or replace damaged real estate and other assets. Homeowners and renters may borrow up to $100,000 for personal property repairs and up to $500,000 for primary residence repairs.
Eligible applicants may also receive a loan increase of up to 20% of their physical damages for mitigation improvements such as insulating pipes or installing storm windows.
Additionally, the SBA’s Economic Injury Disaster Loan (EIDL) program is available for small businesses and private nonprofit organizations that suffered financial losses due to the disaster. These loans are intended for working capital needs like fixed debts and payroll.
Interest rates are set at 4% for businesses, 3.62% for nonprofits, and 2.81% for homeowners and renters with terms extending up to 30 years. Interest does not accrue until 12 months after the first loan disbursement.
Chris Stallings of the SBA stated that "When disasters strike, SBA’s Disaster Loan Outreach Centers play a vital role in helping small businesses and their communities recover." These centers will assist applicants with their loan applications starting July 1 at the Butler County Historic Courthouse in El Dorado.
Applications can be submitted online at sba.gov/disaster or by contacting SBA's Customer Service Center at (800) 659-2955. The deadline for physical damage applications is August 26, while economic injury applications must be submitted by March 27 next year.