SBA Disaster Assistance Available to Arkansas Private Nonprofit Organizations

SACRAMENTO, California, July 15 -- The Small Business Administration's Office of Disaster Assistance issued the following news release:

Low-interest federal disaster loans are now available to certain private nonprofit organizations in Arkansas following President Trump's federal disaster declaration for Public Assistance as a result of severe storms and straight-line winds that occurred April 12, 2020, announced Administrator Jovita Carranza 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, Bradley, Cleveland, Dallas, Desha, Drew, Grant, Jefferson, Lincoln and Ouachita counties.

"Private nonprofit organizations should contact the Arkansas Department of Emergency Management's Recovery Branch by calling (501) 683-6700, emailing RecoveryBranch@adem.arkansas.gov (link sends e-mail) or visiting https://adem.arkansas.gov/recovery to obtain information about applicant briefings," said Director Tanya N. Garfield of SBA's Disaster Field Operations Center-West. "At the briefings, private nonprofit representatives will need to provide information about their organization," continued Garfield. 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 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 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 2.75 percent with terms up to 30 years. The deadline to apply for property damage is Sept. 8, 2020. The deadline to apply for economic injury is April 12, 2021.