Low-interest federal disaster loans through the U.S. Small Business Administration (SBA) are now available to Iowa businesses and residents as a result of President Biden’s major disaster declaration in response to damage caused by severe storms and tornadoes April 26 – 27.
The disaster declaration covers Clarke, Harrison, Mills, Polk, Pottawattamie, Ringgold, Shelby and Union counties.
“SBA’s mission-driven team stands ready to help Iowa’s small businesses and residents impacted by severe storms and tornadoes,” said Administrator Isabella Casillas Guzman, “We’re committed to providing federal disaster loans swiftly and efficiently, with a customer-centric approach to help businesses and communities recover and rebuild.”
Homeowners, renters, most private non-profit organizations, and businesses of all sizes may qualify for disaster assistance through the SBA for physical damages to their property or a low interest Economic Injury Disaster Loan.
Interest rates can be as low as 4 percent for businesses, 3.25 percent for private nonprofit organizations and 2.688 percent for homeowners and renters with terms up to 30 years.
Loan amounts and terms are set by SBA and are based on each applicant’s financial condition.
SBA disaster loan repayment begins 12 months from the date of the first disbursement.
Interest does not begin to accrue until 12 months from the date of the first disaster loan disbursement.
Businesses and nonprofit organizations
Businesses of all sizes and private nonprofit organizations may borrow 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 small businesses, small agricultural cooperatives, small businesses engaged in aquaculture and most private nonprofit organizations of any size, SBA offers Economic Injury Disaster Loans to help meet working capital needs caused by the disaster.
Economic injury assistance is available to businesses regardless of any property damage.
Homeowners
Disaster loans up to $500,000 are available to homeowners to repair or replace damaged or destroyed real estate. Homeowners and renters are eligible for up to $100,000 to repair or replace damaged or destroyed personal property, including personal vehicles.
A Federal-State Disaster Recovery Center opened in Ringgold County in early June. SBA was on-site at the United Baptist Presbyterian Church in Mount Ayr, from 8:00 a.m. – 7:00 p.m. through Wednesday, June 12.
SBA representatives provided one-on-one assistance to survivors with questions, applications, and uploading documents.
Additional assistance and details about the location of disaster recovery centers is also available online at www.lending.sba.gov or by calling the SBA Customer Service Center at (800) 659-2955 for further assistance.