Federal disaster loans are now available to Arkansas businesses and residents impacted by the severe storms, straight-line winds, tornadoes and flooding on May 24 through 27. According to the Federal Emergency Management Agency, residents and businesses in Baxter, Marion and Boone counties are eligible to apply.
FEMA will be partnering with other agencies to help meet the needs of disaster survivors. The U.S. Small Business Administration (SBA) offers disaster loans in a declared major disaster area, and 80% of SBA loans are for homeowners and renters.
Interest rates can be as low as 4% for businesses, 3.25% for private nonprofit organizations and 2.688% 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.
Homeowners may be eligible for a disaster loan up to $500,000 for primary residence repairs or rebuilding. SBA may also be able to assist homeowners and renters with up to $100,000 to replace important personal property, including automobiles damaged or destroyed in the disaster.
Businesses of all sizes and private nonprofit organizations may borrow up to $2 million to repair or replace damaged property, destroyed real estate, machinery, 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.
Applicants may apply online and receive additional disaster assistance information at SBA.gov/disaster.
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