The U.S. Small Business Administration (SBA) is reminding small businesses, private nonprofits, and residents in Kansas of the approaching deadline to apply for federal disaster loans. These loans are intended to help offset physical damage caused by severe storms and flooding that occurred from June 3-7.
The affected areas include the Kansas counties of Butler, Chase, Cowley, Elk, Greenwood, Harvey, Marion, Sedgwick, and Sumner. 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 and renters may apply for loans up to $100,000 for personal property replacement or repair. Homeowners can also apply for up to $500,000 to address primary residence damages. Additionally, applicants might qualify for a loan increase of up to 20% of their verified physical damage for mitigation purposes.
“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.”
The SBA's Economic Injury Disaster Loan (EIDL) program is available for eligible small businesses and private nonprofit organizations impacted financially by this disaster. However, agricultural producers are generally not eligible unless they are aquaculture enterprises.
Interest rates on these loans start as low as 4% for small businesses, 3.625% for nonprofits, and 2.813% for homeowners and renters. The terms can extend up to 30 years with no interest accrual or payments due until one year after the first loan disbursement.
To apply online or get more information about SBA disaster assistance options, visit sba.gov/disaster or contact SBA’s Customer Service Center at (800) 659-2955. The deadline for submitting applications related to physical damage is August 26.