The U.S. Small Business Administration (SBA) is reminding small businesses and private nonprofit organizations of the August 25 deadline to apply for low-interest federal disaster loans. These loans aim to offset economic losses caused by excessive rain and flash flooding that occurred from June 15-24, 2024.
The affected areas include Minnesota counties Blue Earth, Faribault, Jackson, Martin, and Watonwan, along with Emmit and Kossuth counties in Iowa.
Under this declaration, SBA’s Economic Injury Disaster Loan (EIDL) program is available to small businesses, small agricultural cooperatives, nurseries, and private nonprofits with financial losses directly related to the disaster. However, the SBA cannot provide disaster loans to agricultural producers, farmers, or ranchers unless they are small aquaculture enterprises.
EIDLs can address working capital needs due to the disaster even if there was no physical damage. These loans may cover fixed debts, payroll, accounts payable, and other bills not paid because of the disaster.
“Through a declaration by the U.S. Secretary of Agriculture, SBA provides critical financial assistance to help communities recover,” said Chris Stallings, associate administrator of the Office of Disaster Recovery and Resilience at the SBA. “We’re pleased to offer loans to small businesses and private nonprofits impacted by these disasters.”
Loan amounts can reach up to $2 million with interest rates as low as 4% for small businesses and 3.25% for private nonprofits. The terms can extend up to 30 years. Interest does not accrue until one year after the first loan disbursement date.
Applications can be submitted online at sba.gov/disaster or through SBA’s Customer Service Center at (800) 659-2955 or via email at disastercustomerservice@sba.gov. For individuals who are deaf or hard of hearing or have a speech disability, telecommunications relay services are accessible by dialing 7-1-1.
Completed loan applications must be submitted by August 25.
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