SBA Disaster Assistance available to Arkansas private nonprofit organizations
LITTLE ROCK, Ark. (Edited News Release/KAIT) - Low-interest federal disaster loans are now available to certain private nonprofit organizations in Arkansas following President Biden’s federal disaster declaration for Public Assistance as a result of severe storms, straight-line winds, and tornadoes that occurred June 25-26, 2023, announced Administrator Isabella Casillas Guzman of the U.S. Small Business Administration.
Private nonprofits that provide essential services of a governmental nature are eligible for assistance.
These low-interest federal disaster loans are available in Arkansas, Faulkner, Lonoke, and Poinsett counties.
“Private nonprofit organizations should contact Arkansas Department of Emergency Management’s Recovery Branch by calling (501) 683-6700, emailing RecoveryBranch@adem.arkansas.gov, or visiting https://adem.arkansas.gov/recovery to obtain information about applicant briefings,” said Director Jeffrey Lusk of SBA’s Disaster Field Operations Center-West. “At the briefings, private nonprofit representatives will need to provide information about their organization,” continued Lusk. The Federal Emergency Management Agency will use that information to determine if the private nonprofit provides an “essential governmental service” and is a “critical facility” as defined by law. If so, FEMA may provide the private nonprofit with a Public Assistance grant for their eligible costs. If not, FEMA may refer the private nonprofit to SBA for disaster loan assistance.
SBA may lend private nonprofits up to $2 million to repair or replace damaged or destroyed real estate, machinery and equipment, inventory, and other business assets.
SBA can also lend additional funds to help with the cost of improvements to protect, prevent, or minimize disaster damage from occurring in the future.
For certain private nonprofit organizations of any size, SBA offers Economic Injury Disaster Loans to help with meeting 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 nonprofit suffered any property damage.
The interest rate is 2.375 percent with terms up to 30 years. The deadline to apply for property damage is Jan. 16, 2024. The deadline to apply for economic injury is Aug. 14, 2024.
Interest does not begin to accrue until 12 months from the date of the first disaster loan disbursement. SBA disaster loan repayment begins 12 months from the date of the first disbursement.
Applicants may apply online, receive additional disaster assistance information, and download applications at SBA.gov/disaster.
Applicants may also call SBA’s Customer Service Center at (800) 659‑2955 or email firstname.lastname@example.org for more information on SBA disaster assistance.
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