Administrator Isabella Casillas Guzman Announces Low-Interest Federal Disaster Loans

Administrator Isabella Casillas Guzman of the U.S. Small Business Administration (SBA) has announced the availability of low-interest federal disaster loans for certain private nonprofit organizations in Phillips County. This follows the amendment to President Biden’s Oct. 26 major disaster declaration for Public Assistance, addressing severe storms, straight-line winds, tornadoes, and flooding that occurred from July 14 – 21.

Private nonprofits that provide essential services of a governmental nature are eligible for assistance. These low-interest federal disaster loans are now accessible in Allen, Barton, Clark, Comanche, Edwards, Finney, Ford, Greeley, Johnson, Kearny, Pawnee, Phillips, Rawlins, Rice, Russell, Stafford, Thomas, Wallace, Wichita, Woodson, and Wyandotte counties.

Eligibility and Application Process:

Private nonprofit organizations seeking assistance are urged to contact Recovery Section Chief Devan Tucking of the Kansas Division of Emergency Management. They can reach out by calling (785) 217-7233, emailing devan.tucking@ks.gov, or visiting Kansas Division of Emergency Management to obtain information about applicant briefings. During these briefings, representatives must provide information about their organizations.

Associate Administrator Francisco Sánchez of the U.S. Small Business Administration’s Office of Disaster Recovery & Resilience emphasized that FEMA will use this information to determine if the private nonprofit provides an “essential governmental service” and is a “critical facility” as defined by law. If eligible, FEMA may provide a Public Assistance grant. Otherwise, FEMA may refer the private nonprofit to SBA for disaster loan assistance.

Important Dates and Deadlines:

The deadline to apply for a disaster loan for physical damages is Dec. 26, 2023. Private nonprofits in Phillips County may apply late with an explanation until the Dec. 19, amendment to the declaration. Economic Injury Disaster Loans have a deadline of July 26, 2024.

Loan Details:

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. Additional funds may be provided to support improvements for future disaster prevention.

For certain private nonprofit organizations of any size, SBA also offers Economic Injury Disaster Loans to address working capital needs caused by the disaster. The interest rate is 2.375 percent with terms up to 30 years. Interest does not accrue until 12 months from the date of the first disaster loan disbursement, and repayment begins 12 months from the date of the first disbursement.

How to Apply:

Applicants may apply online and find additional disaster assistance information at SBA.gov/disaster. For inquiries, contact SBA’s Customer Service Center at (800) 659‑2955 or email disastercustomerservice@sba.gov. Individuals with hearing impairments can use telecommunications relay services by dialing 7-1-1.

The SBA is committed to providing timely and crucial support to ensure the recovery and resilience of businesses affected by disasters.

Follow COGO! For getting automatic updates of new webinars regarding funding options, and new business trainings hosted related to SBA.