Low-interest federal disaster loans are now available to Iowa businesses and residents as a result of President Biden’s major disaster declaration, U.S. Small Business Administration’s Administrator Isabella Casillas Guzman announced.
The declaration covers Clay, Emmet, Lyon, Plymouth and Sioux counties as a result of severe storms, flooding, straight-line winds and tornadoes that began June 16.
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.
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.
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.
Interest does not begin to accrue until 12 months from the date of the first disaster loan disbursement. SBA disaster loan repayment begins 12 months from the date of the first disbursement.
As soon as Federal-State Disaster Recovery Centers open throughout the affected area, SBA will provide one-on-one assistance to disaster loan applicants. Additional information and details on the location of disaster recovery centers is available by calling the SBA Customer Service Center at (800) 659-2955.
For help, contact your local Iowa Small Business Development Center. SBDCs provide no cost, personalized, and confidential support during disasters. They can assist in your business recovery and help you get back on track with…
- Recovery Planning
- Financial Guidance
- Business Continuity Planning
- Customer Communication
- Workforce Management
- Disaster Loan Assistance
- Connection to Resources
For more information about recent disasters and to request counseling from the SBDC, click here or go to: https://iowasbdc.org/disaster-recovery
Northwest Iowa SBDC Director: Larry Wajda Phone: 712-580-8619 Email: lwajda@iowalakes.edu
Iowa Lakes Community College 1900 Grand Ave, Suite B1 Spencer, IA 51301
Counties Assisted: Clay, Dickinson, Emmet, Kossuth, Lyon, O‘Brien, Osceola, Palo Alto and Sioux. If you are in a different county visit www.Iowasbdc.org to find your nearest center.
