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Floods

Deadline to Apply for Physical Damage Loans Approaching for Kansas Residents

Strategic Insights

— 2 min read

As severe storms, straight-line winds, tornadoes, and flooding affect the state of Kansas, the U.S. Small Business Administration (SBA) reminds eligible businesses, nonprofits, and residents of the impending deadline to apply for low-interest federal disaster loans. By October 14, applicants can submit their applications to offset physical damage caused by the disaster. The disaster declaration covers Reno County, and affected parties can borrow up to $2 million to repair or replace damaged or destroyed business assets. Homeowners and renters are also eligible to apply for home and personal property loans, with a maximum loan amount of $100,000 for personal property and $500,000 for primary residences.

Key Takeaways:

  • The SBA is accepting applications for low-interest federal disaster loans to offset physical damage caused by severe storms, straight-line winds, tornadoes, and flooding in Kansas.
  • The deadline to apply is October 14, and the disaster declaration covers Reno County.
  • Businesses and nonprofits are eligible to borrow up to $2 million to repair or replace damaged or destroyed business assets.
  • Homeowners and renters can apply for up to $100,000 for personal property and $500,000 for primary residences.
  • Applicants can also be eligible for a loan increase of up to 20% of their physical damage for mitigation purposes.
  • Eligible mitigation improvements include strengthening structures to protect against high wind damage, upgrading to wind-rated garage doors, and installing a safe room or storm shelter.
  • The SBA's Economic Injury Disaster Loan (EIDL) program is available to eligible businesses, small agricultural cooperatives, nurseries, and private nonprofit (PNP) organizations.
  • The loan amount for EIDL can be up to $2 million with interest rates as low as 4% for businesses, 3.625% for PNPs, and 2.813% for homeowners and renters.
  • Monthly payments are not due until 12 months from the date of the initial disbursement.

Statistics:

  • Up to $2 million in loans available for businesses to repair or replace damaged or destroyed business assets.
  • Up to $100,000 in loans available for homeowners and renters to replace or repair personal property.
  • Up to $500,000 in loans available for homeowners to repair or replace primary residences.
  • 20% loan increase for mitigation purposes, verified by the SBA.
  • 4% interest rate for business EIDL loans.
  • 3.625% interest rate for PNPs.
  • 2.813% interest rate for homeowners and renters.
  • Loan terms up to 30 years.
  • 12-month payment deferment on monthly payments.

Sources:

  • U.S. Small Business Administration (SBA)
  • Office of Disaster Recovery and Resilience
  • Chris Stallings, associate administrator of the Office of Disaster Recovery and Resilience at the SBA.

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