A statement issued by Rice County last week said the Small Business Administration has two separate programs that are making low-interest, disaster relief loans to several types of businesses and organizations in the wake of the flooding last month throughout Rice County, and Greater Minnesota.
President Biden’s Declaration of a Major Disaster on July 11th activated authority for the SBA to provide disaster assistance and loan assistance to private nonprofit facilities which provide non-critical services of a governmental nature.
These facilities must first apply for and exhaust disaster assistance from the SBA or be declined by the SBA before they can seek assistance for permanent repairs and/or replacements from FEMA.
Non-critical services are defined as Museums, Educational Facilities, Zoos, Custodial care facilities, Libraries, Alcohol & Drug rehabilitation, Community Centers, Battered Spouse Programs, Homeless Shelters, Low-income housing, Shelter Workshops, Food Programs for the needy, Senior citizen centers, and Daycare centers for special needs.
Under the SBA’s Physical Disaster Business Loan program, low-interest, long-term loans can be made to businesses of all sizes, small agricultural cooperatives and most private, nonprofit organizations in order to repair or replace disaster-damaged property, including real estate, inventory, supplies, machinery and equipment.
Meanwhile, the SBA’s Economic Injury Disaster Loan (EIDL) program provides working capital loans to help the same types of organizations meet ordinary and necessary financial obligations that cannot be met as a direct result of the disaster.
These loans are intended to assist through the disaster recovery period. EIDL assistance is available only to entities and their owners who cannot provide for their own recovery from non-government sources, as determined by the SBA.
To apply for assistance, go to MySBA Loan Portal or contact the SBA at 1-833-572-0502.
Physical Loan Application Deadline: 08/27/2024 Economic Injury (EIDL) Loan Application Deadline: 03/28/2025
For a full listing of what constitutes a non-critical service of a governmental nature, and for application information, visit the news section of the Rice County website at ricecountymn.gov.
