The U.S. Small Business Administration (SBA) has announced the availability of low-interest federal disaster loans for businesses and residents affected by severe storms, straight-line winds, and tornadoes that struck Arkansas from June 25 to 26. This announcement comes after the state’s request for a major disaster declaration for individual assistance was denied on November 15.
The disaster declaration makes SBA assistance accessible in thirteen counties across Arkansas, including Arkansas, Craighead, Crittenden, Cross, Faulkner, Jackson, Jefferson, Lonoke, Mississippi, Poinsett, Prairie, Pulaski, and White counties.
Administrator Isabella Casillas Guzman emphasized the SBA’s commitment to assisting small businesses and residents impacted by the natural disasters swiftly and efficiently. The SBA Virtual Disaster Loan Outreach Center has been established to provide personalized assistance to business owners, homeowners, and renters. SBA customer service representatives will be available to answer questions, explain the application process, and assist individuals in completing their electronic loan applications.
Disaster Loan Outreach Centers will open beginning November 27, where SBA representatives will provide in-person support. Businesses of all sizes, private nonprofit organizations, homeowners, and renters are eligible for loans to repair or replace damaged or destroyed real estate, machinery, equipment, inventory, personal property, and vehicles.
Furthermore, Economic Injury Disaster Loans are available to small businesses, agricultural cooperatives, and most private nonprofit organizations to address working capital needs caused by the disaster, irrespective of property damage. Interest rates for these loans can be as low as 4 percent for businesses, 2.375 percent for private nonprofit organizations, and 2.5 percent for homeowners and renters, with terms up to 30 years.
Applicants can apply online via the SBA’s website or contact the Customer Service Center for assistance. The deadline to apply for property damage is January 16, 2024, while the deadline for economic injury is August 19, 2024. Completed applications should be mailed to the U.S. Small Business Administration in Fort Worth, Texas.