Des Moines, Iowa – Gov. Kim Reynolds announced Friday that the U.S. Small Business Administration has declared a disaster for seven Iowa counties impacted by severe storms and flooding in July. Gov. Reynolds requested the SBA disaster declaration on Aug. 2.
The SBA disaster declaration makes assistance available in Black Hawk, Bremer, Buchanan, Butler, Chickasaw, Fayette, and Floyd counties. Affected residents and business owners in these counties may now apply for low-interest loans from the SBA.
Disaster loans up to $200,000 are available to homeowners to repair or replace damaged or destroyed real estate. Homeowners and renters are eligible for up to $40,000 to repair or replace damaged or destroyed personal property.
Businesses of any size and private, nonprofit organizations may borrow up to $2 million to repair or replace damaged or destroyed real estate, machinery and equipment, inventory, and other business assets.
SBA can also lend additional funds to homeowners and businesses to help with the cost of making improvements that protect, prevent, or minimize the same type of disaster damage from happening again in the future.
For small businesses, small agricultural cooperatives, small businesses engaged in aquaculture and most private, nonprofit organizations of any size, SBA offers Economic Injury Disaster Loans to help meet working capital needs caused by the disaster. Economic injury assistance is available regardless of whether the business suffered any property damage.
Interest rates can be as low as 1.75% for homeowners and renters, 2.5% for private, nonprofit organizations, and 3.305% for businesses, with terms up to 30 years. Loan amounts and terms are set by SBA and are based upon each applicant’s financial condition.
Impacted homeowners, renters, businesses of all sizes, and private, nonprofit organizations in the designated counties may apply for assistance at the Disaster Loan Outreach Center in Sumner beginning August 8.