The deadline for Arkansas private nonprofit organizations to apply for Small Business Administration (SBA) federal disaster loans is approaching. Francisco Sánchez Jr., associate administrator for the Office of Disaster Recovery and Resilience at the SBA, reminded organizations of the August 14, 2024 deadline. The loans address economic injury caused by severe storms, straight-line winds, and tornadoes that occurred on June 25-26, 2023. Private nonprofits that provide services of a governmental nature are eligible for this assistance.
Sánchez emphasized that eligible private nonprofits of any size may apply for SBA Economic Injury Disaster Loans (EIDL) of up to $2 million. These loans help meet working capital needs caused by the disaster. “Economic Injury Disaster Loans may be used to pay fixed debts, payroll, accounts payable, and other bills that cannot be paid because of the disaster’s impact. Economic injury assistance is available regardless of whether the private nonprofit suffered any property damage,” Sánchez said.
These low-interest federal disaster loans are available in Arkansas, Faulkner, Lonoke, and Poinsett counties. The interest rate for these loans is 2.375 percent with terms up to 30 years. Loan amounts and terms are set by the SBA based on each applicant’s financial condition.
Interest on these loans does not begin to accrue until 12 months from the date of the first disaster loan disbursement. Repayment of the SBA disaster loans begins 12 months from the date of the first disbursement. This gives nonprofits some breathing room to stabilize their operations before needing to start repaying the loan.
Applicants can apply online and find additional disaster assistance information at SBA.gov/disaster. For more information on SBA disaster assistance, applicants can call SBA’s Customer Service Center at (800) 659-2955 or email disastercustomerservice@sba.gov. For individuals who are deaf, hard of hearing, or have a speech disability, dialing 7-1-1 provides access to telecommunications relay services.
The assistance provided by the SBA is crucial for the recovery and continued operation of nonprofits affected by the disaster. By offering these loans, the SBA ensures that these organizations can continue to provide services to their communities without interruption.
It is important for eligible nonprofits to take advantage of this opportunity before the deadline. The process is straightforward, and securing an SBA disaster loan can make a significant difference in managing the financial impact of such a severe event. Nonprofits are encouraged to review their financial needs and apply as soon as possible to ensure they receive the support they need.
By addressing the working capital needs through these loans, the SBA helps stabilize the operations of nonprofits, allowing them to focus on their core mission of serving the community. The impact of severe storms, straight-line winds, and tornadoes can be devastating, but with the support of SBA loans, nonprofits have a lifeline to help them navigate through the recovery process.
The SBA’s federal disaster loans are a critical resource for private nonprofits in Arkansas affected by the severe weather events in June 2023. With the deadline fast approaching, eligible organizations should act quickly to apply for this financial assistance and secure the support they need to continue their important work.
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This article, “Arkansas Nonprofits: SBA Disaster Loan Deadline Approaches” was first published on Small Business Trends