SACRAMENTO, Calif. – Low-interest federal disaster loans are now available to certain private nonprofit organizations in Harrison, Lyon, Monona, Osceola, Pocahontas, Winneshiek and Wright counties following the amendment to President Biden’s July 24 major disaster declaration for Public Assistance as a result of severe storms, flooding, straight-line winds and tornadoes that occurred June 16 – July 23 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 Buena Vista, Cherokee, Clay, Dickinson, Harrison, Humboldt, Lyon, Monona, O'Brien, Osceola, Palo Alto, Plymouth, Pocahontas, Scott, Sioux, Winnebago, Winneshiek, Woodbury, Worth and Wright counties.
“Private nonprofit organizations should contact Public Assistance Bureau Chief David Parziale of the Iowa Department of Homeland Security and Emergency Management by calling (515) 249-2242, emailing David.Parziale@iowa.gov or visiting https://homelandsecurity.iowa.gov/disasters/public-assistance/ to obtain information about applicant briefings,” said Francisco Sánchez Jr., associate administrator for the Office of Disaster Recovery and Resilience at the Small Business Administration. “At the briefings, private nonprofit representatives will need to provide information about their organization,” continued Sánchez. 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. FEMA may provide the private nonprofit with a Public Assistance grant for their eligible costs. SBA encourages all private nonprofit organizations to apply with 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 also offers Economic Injury Disaster Loans to 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.
The interest rate is 3.25 percent with terms up to 30 years. The deadline to apply for property damage is Sept. 23, 2024. The deadline to apply for economic injury is April 24, 2025.
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 and receive additional disaster assistance information at SBA.gov/disaster. Applicants may also call SBA’s Customer Service Center at (800) 659-2955 or email disastercustomerservice@sba.gov for more information on SBA disaster assistance. For people who are deaf, hard of hearing, or have a speech disability, please dial 7-1-1 to access telecommunications relay services.
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About the U.S. Small Business Administration
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.