SACRAMENTO, CA-Low-interest federal disaster loans are now available to certain private, nonprofit organizations (PNPs) in California, following President Obama’s federal disaster declaration for Public Assistance as a result of an earthquake during the period of August 24 – September 7, 2014, announced Maria Contreras-Sweet, Administrator of the U.S. Small Business Administration (SBA). PNPs that provide essential services of a governmental nature are eligible for assistance.
SBA disaster assistance is now available in the counties of Napa and Solano.
“PNP organizations should contact Peter Crase with the California Emergency Management Agency at (916) 845-8203 to obtain information about applicant briefings,” said Tanya N. Garfield, Director of SBA’s Disaster Field Operations Center-West. “At the briefings, PNP representatives will need to provide information about their organization,” continued Garfield. FEMA will use that information to determine if the PNP provides an “essential governmental service” and is a “critical facility” as defined by law. If so, FEMA may provide the PNP with a Public Assistance grant for their eligible costs. If not, FEMA may refer the PNP to SBA for disaster loan assistance.
SBA may lend PNPs 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 help with the cost of making improvements that protect, prevent or minimize the same type of disaster damage from occurring in the future.
For certain private, nonprofit organizations of any size, SBA offers Economic Injury Disaster Loans (EIDLs) to help meet working capital needs caused by the disaster. EIDLs may be used to pay fixed debts, payroll, accounts payable and other bills that cannot be paid because of the disaster’s impact. EIDL assistance is available regardless of whether the nonprofit suffered any property damage.
The interest rate is 2.625% with terms up to 30 years. The filing deadline to return applications for property damage is November 10, 2014. The deadline to return economic injury applications is June 11, 2015.