SBA Loans For Nonprofit Operations

Cross-Posted from The NonProfit Times Website

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If your nonprofit operates in any county that has been declared a major disaster area by President Barack Obama due to Hurricane Sandy, it might be eligible for low-interest loan from the Small Business Administration (SBA).

Nonprofits can borrow up to $2 million at 3 percent interest rate on up to 30-year terms. Public liaison Carol Chastang said the SBA has already distributed 32,000 loan applications via mail and email in relation to Hurricane Sandy. According to Chastang, it takes 10 days after the SBA receives a completed application to render a decision.

As of Thursday, President Obama has declared major disasters in New York, New Jersey and Connecticut counties, but Chastang said her office, in conjunction with FEMA, is still conducting assessments in areas affected by Sandy and it is likely that additionally counties will be declared major disaster zones. The latest disaster declarations can be found at SBA’s Sandy hub: www.sba.gov/sandy

“We encourage people to make that phone call as quickly as possible,” said Chastang. “You can also apply online. We also encourage everyone to register with disasterassistance.gov or FEMA because other forms of assistance will be made available in the days to come.” She added that registering with FEMA, disasterassistance.gov or the SBA is “plugging into the pipeline.” Online SBA disaster loan applications are available at https://disasterloan.sba.gov/ela/, or you can call 1-800-659-2955.