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Floods

Low-Interest Disaster Loans Available for Kansas Businesses and Residents Affected by Severe Storms

Strategic Insights

— 1 min read

The U.S. Small Business Administration (SBA) has announced the availability of low-interest federal disaster loans to Kansas businesses and residents affected by severe storms, straight-line winds, tornadoes, and flooding that occurred on May 18-19. The SBA issued a disaster declaration in response to a request from Gov. Laura Kelly on August 13, covering the Kansas county of Reno.

Key Takeaways:

  • Businesses and nonprofits may borrow up to $2 million to repair or replace disaster-damaged or destroyed real estate, machinery, and equipment, inventory, and other business assets.
  • Homeowners and renters may borrow up to $100,000 to replace or repair personal property, such as clothing, furniture, cars, and appliances, and up to $500,000 to replace or repair their primary residence.
  • Applicants may also be eligible for a loan increase of up to 20% of their physical damage, as verified by the SBA, for mitigation purposes, including strengthening structures to protect against high wind damage 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 organizations impacted by financial losses directly related to this disaster.
  • Interest rates for disaster loans are as low as 4% for businesses, 3.625% for nonprofits, and 2.813% for homeowners and renters, with terms up to 30 years and no payments due until 12 months from the date of the first loan disbursement.
  • The SBA encourages applicants to submit their loan applications promptly, as applications will be prioritized in the order they are received.

Statistics:

  • Loan amount: up to $2 million for businesses and nonprofits, up to $500,000 for homeowners, up to $100,000 for renters.
  • Interest rates: 4% for businesses, 3.625% for nonprofits, 2.813% for homeowners and renters.
  • Terms: up to 30 years.
  • Payment schedule: no payments due until 12 months from the date of the first loan disbursement.
  • Eligible applicants: businesses, nonprofits, homeowners, and renters in the affected area.

Sources:

  • U.S. Small Business Administration (SBA)
  • Disaster Field Operations Center West
  • Gov. Laura Kelly, State of Kansas
  • Chris Stallings, Associate Administrator, Office of Disaster Recovery and Resilience, SBA
  • Reno County, Kansas
  • SBA Disaster Relief Loans FAQ

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