Joseph M. Folsom, Director of the U. S. Small Business Administration’s (SBA) Iowa District Office, announced today that private nonprofit organizations (PNPs) who have suffered property damage as a result of the severe storms, tornadoes, straight-line winds and flooding that occurred June 14 – 23, 2014, have until September 22, 2014, to apply for an SBA federal disaster loan for property damage.
According to Folsom, SBA may lend PNPs 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 making improvements that protect, prevent or minimize the same type of disaster damage from occurring in the future.
For certain private, nonprofit organizations of any size, SBA offers Economic Injury Disaster Loans (EIDLs) to help meet working capital needs caused by the disaster. EIDLs may be used to pay fixed debts, payroll, accounts payable and other bills that cannot be paid because of the disaster’s impact. EIDL assistance is available regardless of whether the nonprofit suffered any property damage.
These low-interest federal disaster loans are available in the Iowa counties of Allamakee, Buchanan, Buena Vista, Butler, Cherokee, Chickasaw, Clay, Dickinson, Emmet, Fayette, Franklin, Hancock, Humboldt, Ida, Kossuth, Lyon, Osceola, Palo Alto, Plymouth, Pocahontas, Sac, Sioux, Winnebago, Winneshiek, Woodbury, Wright, and the Sac and Fox Tribe of the Mississippi in Iowa.
“PNP organizations should contact the HSEMD Public Information Officer at (515) 725-3231 or via email at HSEMDPIO@iowa.gov to obtain information about local briefings. At the briefings, PNP representatives will need to provide information about their organization,” said Tanya N. Garfield, Director of SBA’s Disaster Field Operations Center-West. FEMA will use that information to determine if the PNP provides an “essential governmental service” and is a “critical facility” as defined by law. If so, FEMA may provide the PNP with a Public Assistance grant for their eligible costs. If not, FEMA may refer the PNP to SBA for disaster loan assistance.
The interest rate is 2.625% with terms up to 30 years. Loan amounts and terms are set by SBA and are based on each applicant’s financial condition.
Applicants may apply online using the Electronic Loan Application (ELA) via SBA’s secure Web site at https://disasterloan.sba.gov/ela.
Disaster loan information and application forms are also available from SBA’s Customer Service Center by calling (800) 659-2955 or e-mailing email@example.com. Individuals who are deaf or hard‑of‑hearing may call (800) 877-8339. For more information about SBA’s disaster assistance programs, visit http://www.sba.gov/disaster.
The deadline to return applications for property damage is September 22, 2014. PNPs still have until April 24, 2015 to apply for economic injury disaster loans.