Vital Working Capital for Small Businesses and Private Nonprofits Affected by Tropical Storm Helene
The U.S. Small Business Administration encourages small businesses and private nonprofit organizations to apply for low interest federal disaster loans to offset economic losses caused by Tropical Storm Helene.
The disaster declaration covers Ashe, Avery, Haywood, Madison, Mitchell, Watauga, and Yancey in North Carolina; Carter, Cocke, Grainger, Greene, Hamblen, Hancock, Hawkins, Jefferson, Johnson, Sevier, Sullivan, Unicoi, and Washington counties in Tennessee; and Grayson, Scott, and Washington in Virginia.
“SBA loans help eligible small businesses and private nonprofits cover operating expenses after a disaster, which is crucial for their recovery,” said Chris Stallings, associate administrator of the Office of Disaster Recovery and Resilience at the SBA. “These loans not only help business owners get back on their feet but also play a key role in sustaining local economies in the aftermath of a disaster.”
Under this declaration, SBA’s Economic Injury Disaster Loan (EIDL) program is available to small businesses, small agricultural cooperatives, nurseries, and PNPs with financial losses directly related to the disaster. The SBA is unable to provide disaster loans to agricultural producers, farmers, or ranchers, except for small aquaculture enterprises.
EIDLs are available for working capital needs caused by the disaster and are available even if the business or PNP did not suffer any physical damage. The loans may be used to pay fixed debts, payroll, accounts payable and other bills not paid due to the disaster.
The loan amount can be up to $2 million with interest rates of 4% for small businesses and 3.25% for private nonprofit organizations, and terms up to 30 years. Interest does not accrue, and payments are not due until 12 months from the date of the first loan disbursement. The SBA sets loan amount terms based on each applicant’s financial condition.
For more information, visit www.sba.gov/funding-programs/disaster-assistance/economic-injury-disaster-loans.
