SBA Offers Disaster Loans to Missouri Nonprofits After May Storms

The U.S. Small Business Administration (SBA) has announced the availability of low-interest federal disaster loans for certain private nonprofit organizations in Missouri. This assistance follows President Biden’s federal disaster declaration due to severe storms, straight-line winds, tornadoes, and flooding from May 19 to 27. Administrator Isabella Casillas Guzman confirmed that private nonprofits providing essential governmental services are eligible for this aid.

The disaster loans are available in Barry, Bollinger, Butler, Carter, Howell, Madison, McDonald, New Madrid, Oregon, Reynolds, Ripley, Scott, Shannon, Stoddard, and Texas counties. Francisco Sánchez Jr., associate administrator for the Office of Disaster Recovery and Resilience at the SBA, advised private nonprofits to contact the Missouri State Emergency Management Agency at (573) 526-9100 or visit their website for more information on applicant briefings. At these briefings, representatives will need to provide details about their organizations. FEMA will use this information to determine if the nonprofit provides an essential governmental service and qualifies as a critical facility. Eligible organizations may receive Public Assistance grants for their costs.

The SBA can lend up to $2 million to private nonprofits for repairing or replacing damaged or destroyed real estate, machinery, equipment, inventory, and other business assets. Additionally, the SBA offers funds for improvements to prevent or minimize future disaster damage.

Economic Injury Disaster Loans are also available for nonprofits of any size to help meet working capital needs caused by the disaster. These loans can be used to pay fixed debts, payroll, accounts payable, and other bills that cannot be covered due to the disaster’s impact. This assistance is available regardless of whether the nonprofit experienced property damage.

The interest rate for these loans is 3.25 percent, with repayment terms of up to 30 years. The deadline to apply for loans covering property damage is September 23, 2024, and for economic injury loans, the deadline is April 23, 2025. Interest does not begin to accrue until 12 months after the first loan disbursement, with repayment also starting 12 months after disbursement.

Applications can be submitted online at SBA.gov/disaster, where additional disaster assistance information is also available. The SBA’s Customer Service Center can be reached at (800) 659-2955 or via email at disastercustomerservice@sba.gov. For those who are deaf, hard of hearing, or have a speech disability, telecommunications relay services can be accessed by dialing 7-1-1.

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This article, "SBA Offers Disaster Loans to Missouri Nonprofits After May Storms" was first published on Small Business Trends