SBA Announces Availability of Low-Interest Loans for Non-Profit Organizations in Kansas

Strategic Insights -

Following severe storms, straight-line winds, tornadoes, and flooding in Kansas, the U.S. Small Business Administration (SBA) has announced the availability of low-interest federal disaster loans to private nonprofit organizations in the affected counties. Eligible non-profit organizations, such as faith-based groups, food kitchens, homeless shelters, and community centers, can apply for both business physical damage loans and Economic Injury Disaster Loans (EIDLs) to cover losses. The loans can be used to repair or replace damaged or destroyed real estate, machinery, and equipment, and applicants may also be eligible for a loan increase of up to 20% for mitigation purposes.

Key Takeaways:

  • The disaster declaration covers Kansas counties of Bourbon, Cheyenne, Edwards, Gove, Kiowa, Logan, Pratt, Reno, Scott, Sheridan, and Stafford.
  • Eligible non-profit organizations can borrow up to $2 million to repair or replace damaged or destroyed assets, and may also be eligible for a loan increase of up to 20% for mitigation purposes.
  • EIDLs are available for working capital needs caused by the disaster and may be used to pay fixed debts, payroll, accounts payable, and other bills not paid due to the disaster.
  • Interest rates are as low as 3.625% for non-profit organizations with terms up to 30 years.
  • Applications will be prioritized in the order they are received, and the SBA remains committed to processing them as efficiently as possible.

Statistics:

  • 11 Kansas counties are covered under the disaster declaration.
  • Non-profit organizations can borrow up to $2 million to repair or replace damaged or destroyed assets.
  • Interest rates for non-profit organizations are as low as 3.625%.
  • The deadline to return applications for physical property damage is September 22, 2025.
  • The deadline to return economic injury applications is April 22, 2026.

Sources:

  • United States Small Business Administration, "SBA Disaster Assistance in Response to Severe Storms and Flooding in Kansas" (Source: www.sba.gov)
  • United States Small Business Administration, About the U.S. Small Business Administration (Source: www.sba.gov)