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Floods

Low Interest Disaster Loans Available for Private Nonprofit Organizations

Strategic Insights

— 1 min read

Low interest disaster loans are now available to private nonprofit organizations (PNPs) affected by severe storms and flooding in the Sisseton-Wahpeton Oyate of the Lake Traverse Reservation. The U.S. Small Business Administration (SBA) has announced the availability of these loans, which can help PNPs recover from physical damage and economic injury. Eligible organizations can borrow up to $2 million to repair or replace damaged or destroyed assets, and may also be eligible for an increase of up to 20% of their physical damage for mitigation purposes.

Key Takeaways:

  • Private nonprofit organizations (PNPs) affected by severe storms and flooding in the Sisseton-Wahpeton Oyate of the Lake Traverse Reservation are eligible for low interest disaster loans.
  • Eligible PNPs can borrow up to $2 million to repair or replace damaged or destroyed real estate, machinery and equipment, inventory, and other business assets.
  • PNPs may also be eligible for a loan increase of up to 20% of their physical damage for mitigation purposes.
  • Economic Injury Disaster Loans (EIDLs) are available to cover working capital needs caused by the disaster, even if the PNP did not suffer any physical damage.
  • PNPs can use EIDLs to pay fixed debts, payroll, accounts payable, and other bills not paid due to the disaster.
  • Interest rates are as low as 3.625% with terms up to 30 years.
  • Payments are not due until 12 months from the date of the first loan disbursement.
  • The SBA will set loan amounts and terms based on each applicant's financial condition.
  • The SBA encourages applicants to submit their loan applications promptly, as applications will be prioritized in the order they are received.

Statistics:

  • Maximum loan amount: $2 million
  • Potential loan increase for mitigation purposes: up to 20% of physical damage
  • Interest rate: 3.625%
  • Maximum loan term: 30 years
  • First payment due date: 12 months from the date of the first loan disbursement

Sources:

  • U.S. Small Business Administration (SBA)
  • Office of Disaster Recovery and Resilience
  • Sisseton-Wahpeton Oyate of the Lake Traverse Reservation

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