Deadline approaching for private nonprofits to apply for physical damage loans

(ABC 6 News) – The U.S. Small Business Administration (SBA) is reminding eligible private nonprofit (PNP) organizations in Minnesota of the August 27 deadline to submit disaster loan applications for physical damages caused by severe storms and flooding that occurred on June 16 through July 4.

Eligible PNP organizations in the counties of Blue Earth, Carver, Cass, Cook, Cottonwood, Faribault, Fillmore, Freeborn, Goodhue, Jackson, Lake, Le Sueur, Murray, Nobles, Pipestone, Rice, Rock, St. Louis, Steele, Wabasha, Waseca and Watonwan may apply. Examples of eligible non-critical PNP organizations include, but are not limited to, food kitchens, homeless shelters, museums, libraries, community centers, schools, and colleges.

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 3.25%, with terms up to 30 years.

Applicants may be eligible for a loan amount increase of up to 20 percent of their physical damages, as verified by the SBA, for mitigation purposes. Eligible mitigation improvements might include insulating pipes, walls and attics, weather stripping doors and windows, and installing storm windows to help protect property and occupants from future damage caused by any disaster.

The SBA also offers Economic Injury Disaster Loans (EIDLs) to help meet working capital needs, such as ongoing operating expenses for PNP organizations.  EIDL assistance is available regardless of whether the organization suffered any physical property damage.

PNP organizations are urged to contact their county’s emergency manager to provide information about their organization. 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.

Applicants may apply online and receive additional disaster assistance information at SBA.gov/disaster. Applicants may also call SBA’s Customer Service Center at (800) 659-2955 or email disastercustomerservice@sba.gov for more information on SBA disaster assistance. For people who are deaf, hard of hearing, or have a speech disability, please dial 7-1-1 to access telecommunications
relay services.

The filing deadline to submit applications for physical property damage is August 27, 2024. The
deadline to submit economic injury applications is March 28, 2025.