The Small Business Administration has released more details on low-interest loans that may be available to private nonprofits (PNPs) affected by the January storm in Sussex County.
These loans are available following a Presidential disaster declaration for Public Assistance resulting from damages caused by a severe winter storm and flooding on Jan. 22 – 23, 2016.
Examples of eligible organizations include, but are not limited to, food kitchens, homeless shelters, museums, libraries, community centers, schools and colleges.
“PNP organizations are urged to contact their County’s Emergency Manager to obtain information about local briefings. At the meeting, PNP representatives will need to provide information about their organization,” said Frank Skaggs, director of SBA Field Operations Center East in Atlanta.
The information will be submitted to FEMA to determine eligibility for a Public Assistance grant or whether the PNP should be referred to SBA for disaster loan assistance.
PNP organizations may borrow up to $2 million to repair or replace damaged or destroyed real estate, machinery and equipment, inventory and other business assets.
The interest rate is 2.625 percent with terms up to 30 years. Applicants may be eligible for a loan amount increase up to 20 percent of their physical damages, as verified by the SBA for mitigation purposes. Eligible mitigation improvements may now include a safe room or storm shelter to help protect property and occupants from future damage caused by a similar disaster.
The SBA also offers Economic Injury Disaster Loans to help meet working capital needs, such as ongoing operating expenses to PNP organizations. Economic Injury Disaster Loan assistance is available regardless of whether the organization suffered any physical property damage.
Applicants may apply online using the Electronic Loan Application (ELA) via SBA’s secure website at https://disasterloan.sba.gov/ela.
