SBA Disaster Assistance Available to Alaska Private Nonprofit Organizations

SACRAMENTO, Calif. - Low-interest federal disaster loans are now available to certain private nonprofit organizations in Alaska following President Biden's federal disaster declaration for Public Assistance as a result of flooding that occurred Aug. 5-6, announced Administrator Isabella Casillas Guzman of the U.S. Small Business Administration. Private nonprofits that provide essential services of a governmental nature are eligible for assistance.

These low-interest federal disaster loans are available in the City and Borough of Juneau in Alaska.

"Private nonprofit organizations should contact the Alaska Division of Homeland Security and Emergency Management by calling Alan Cavallo at (907) 428-7051, emailing [email protected] or visiting www.ready.alaska.gov to obtain information about applicant briefings," said Francisco Sánchez Jr., associate administrator for the Office of Disaster Recovery and Resilience at the Small Business Administration. "At the briefings, private nonprofit representatives will need to provide information about their organization," continued Sánchez. The Federal Emergency Management Agency will use that information to determine if the private nonprofit provides an "essential governmental service" and is a "critical facility" as defined by law. FEMA may provide the private nonprofit with a Public Assistance grant for their eligible costs. SBA encourages all private nonprofit organizations to apply with SBA for disaster loan assistance.

SBA may lend private nonprofits up to $2 million to repair or replace damaged or destroyed real estate, machinery and equipment, inventory and other business assets.

For certain private nonprofit organizations of any size, SBA offers Economic Injury Disaster Loans to help with meeting working capital needs caused by the disaster. Economic Injury Disaster Loans may be used to pay fixed debts, payroll, accounts payable and other bills that cannot be paid because of the disaster's impact. Economic injury assistance is available regardless of whether the nonprofit suffered any property damage.

"SBA's disaster loan program offers an important advantage-the chance to incorporate measures that can reduce the risk of future damage," Sánchez continued. "Work with contractors and mitigation professionals to strengthen your property and take advantage of the opportunity to request additional SBA disaster loan funds for these proactive improvements."

The interest rate is 3.25 percent with terms up to 30 years. The deadline to apply for property damage is Dec. 16, 2024. The deadline to apply for economic injury is July 16, 2025.

Interest does not begin to accrue until 12 months from the date of the first disaster loan disbursement. SBA disaster loan repayment begins 12 months from the date of the first disbursement.

On October 15, 2024, it was announced that funds for the Disaster Loan Program have been fully expended. While no new loans can be issued until Congress appropriates additional funding, we remain committed to supporting disaster survivors. Applications will continue to be accepted and processed to ensure individuals and businesses are prepared to receive assistance once funding becomes available.

Applicants are encouraged to submit their loan applications promptly for review in anticipation of future funding.

Applicants may apply online and receive additional disaster assistance information at SBA.gov/disaster. Applicants may also call SBA's Customer Service Center at (800) 659-2955 or email [email protected] for more information on SBA disaster assistance. For people who are deaf, hard of hearing, or have a speech disability, please dial 7-1-1 to access telecommunications relay services.

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About the U.S. Small Business Administration
The U.S. Small Business Administration helps power the American dream of business ownership. As the only go-to resource and voice for small businesses backed by the strength of the federal government, the SBA empowers entrepreneurs and small business owners with the resources and support they need to start, grow, expand their businesses, or recover from a declared disaster. It delivers services through an extensive network of SBA field offices and partnerships with public and private organizations. To learn more, visit www.sba.gov.