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 Arkansas affected by severe storms, tornadoes, and flooding from April 2 to April 22. This announcement follows a disaster declaration requested by Governor Sarah Sanders on July 18.
The affected counties include Cross, Hempstead, Lawrence, and Little River. Businesses and nonprofits can apply for business physical disaster loans up to $2 million to repair or replace damaged or destroyed real estate, machinery, equipment, inventory, and other assets.
Homeowners and renters are eligible for home and personal property loans up to $100,000 for replacing or repairing personal items like clothing, furniture, cars, and appliances. Homeowners may also apply for up to $500,000 to address damage to their primary residence.
Applicants may qualify for a loan increase of up to 20% of their physical damages verified by the SBA for mitigation purposes. Mitigation improvements could include insulating pipes and walls or installing storm windows.
The SBA’s Economic Injury Disaster Loan (EIDL) program is available for eligible small businesses and private nonprofit organizations impacted financially by this disaster. EIDLs cover working capital needs caused by the disaster even if there was no physical damage.
“One distinct advantage of SBA’s disaster loan program is the opportunity to fund upgrades reducing the risk of future storm damage,” said Chris Stallings, associate administrator of the Office of Disaster Recovery and Resilience at the SBA. “I encourage businesses and homeowners to work with contractors and mitigation professionals to improve their storm readiness while taking advantage of SBA’s physical damage loans.”
Interest rates start as low as 4% for businesses, 3.625% for nonprofits, and 2.75% for homeowners and renters with terms extending up to 30 years. Interest does not accrue nor are payments due until 12 months after the first loan disbursement.
Applications should be submitted promptly as they will be prioritized based on receipt order. The deadline for returning physical damage applications is September 22, 2025; economic injury applications are due by April 22, 2026.
For more information or assistance with applications visit sba.gov/disaster or contact SBA’s Customer Service Center at (800) 659-2955 or email disastercustomerservice@sba.gov.