ATLANTA – Small businesses, small agricultural cooperatives, small businesses engaged in aquaculture, and private nonprofit organizations in Indiana with financial losses due to damages from the severe storms, straight-line winds and tornadoes that struck the area from March 31 through April 1 are encouraged to apply for working capital disaster loans (Economic Injury Disaster Loans – EIDL) from the U.S. Small Business Administration (SBA) to help with their necessary financial obligations.
“To serve the economic interest of the community, we have an extended application timeframe of nine months from the disaster declaration, which enables businesses to assess their needs before applying for working capital loans. As the deadlines to apply approach, we urge businesses to act now,” said Kem Fleming, director of SBA Field Operations Center East in Atlanta. The deadline for filing an application for working capital disaster loan is January 15, 2024.
Physical damage caused by a disaster is obvious but many businesses without physical damage are affected in ways that can be just as devastating. If businesses close because of the disaster, that business may not have the revenue to pay their bills. In cases like these, a working capital disaster loan can provide funds to keep its obligations up to date until business returns to normal.
These federal loans provide funds for working capital needs caused by the disaster and are available even if the business did not suffer any physical damage.
Loan amounts can be up to $2 million with interest rates of 4 percent or lower for small businesses and 2.375 percent or lower for private nonprofit organizations, with terms up to 30 years. The SBA determines eligibility based on the size of the applicant, type of activity and its financial resources. Loan amounts and terms are set by the SBA and are based on each applicant’s financial condition. These working capital loans may be used to pay fixed debts, payroll, accounts payable and other bills that could have been paid had the disaster not occurred. The loans are not intended to replace lost sales or profits.
Applicants may apply online using the Electronic Loan Application (ELA) via the SBA’s secure website at https://disasterloanassistance.sba.gov/ela/s/ .
Businesses in the following counties are eligible to apply: Adams, Allen, Bartholomew, Benton, Blackford, Boone, Brown, Carroll, Cass, Clay, Clinton, DeKalb, Delaware, Grant, Greene, Hamilton, Hendricks, Howard, Huntington, Jackson, Jasper, Johnson, Knox, Lake, Lawrence, Madison, Marion, Miami, Monroe, Montgomery, Morgan, Newton, Noble, Owen, Porter, Pulaski, Putnam, Shelby, Sullivan, Tippecanoe, Tipton, Vigo, Wabash, Warren, Wells, White and Whitley in Indiana; and Clark, Cook, Crawford, Iroquois, Kankakee, Vermillion and Will in Illinois; Defiance, Paulding and Van Wert in Ohio.
Disaster loan information and application forms may also be obtained by calling the SBA’s Customer Service Center at 800-659-2955 (if you are deaf, hard of hearing, or have a speech disability, please dial 7-1-1 to access telecommunications relay services), or by sending an email to DisasterCustomerService@sba.gov. Loan applications can be downloaded from the SBA’s website at sba.gov/disaster. Completed applications should be mailed to: U.S. Small Business Administration, Processing and Disbursement Center, 14925 Kingsport Road, Fort Worth, TX 76155.
The SBA will continue to partner with local stakeholders to conduct webinars and workshops targeted toward businesses and non-profit organizations located in disaster-declared counties. Future events will be announced through the media.
The deadline to return economic injury applications is Jan. 15, 2024.
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About the U.S. Small Business Administration
Recently, U.S. SBA Administrator Isabella Casillas Guzman announced a policy change granting 12 months of no payments and 0 percent interest. This policy change will benefit disaster survivors and help them to decrease the overall cost of recovery by reducing the amount of accrued interest they must repay. Details are available through the SBA Disaster Assistance Customer Service Center at 800-659-2955. Individuals with verbal or hearing impairments may dial 7-1-1 to access telecommunications relay services from 8 a.m. to 8 p.m. ET, Monday to Friday, or email: DisasterCustomerService@sba.gov.
The U.S. Small Business Administration helps power the American dream of business ownership. As the only go-to resource and voice for small businesses backed by the strength of the federal government, the SBA empowers entrepreneurs and small business owners with the resources and support they need to start, grow, expand their businesses, or recover from a declared disaster. It delivers services through an extensive network of SBA field offices and partnerships with public and private organizations. To learn more, visit www.sba.gov.