SBA Disaster Assistance Available to Private Non-Profit Organizations Affected by Gustav

2008-10-01 01:46:01 -

- The U.S. Small Business Administration announces that certain Private Non-Profit Organizations (PNPs) that do not provide critical services of a governmental nature may be eligible to apply for low interest rate disaster loans. These loans are available as a result of a Presidential disaster declaration for Public Assistance resulting from damages caused by Hurricane Gustav that occurred between August 28 and September 8, 2008.

PNPs located in Adams, Amite, Claiborne, Copiah, Forrest, Franklin, George, Hancock, Harrison, Jackson, Jefferson, Jefferson Davis, Lawrence, Lincoln, Marion, Pearl River, Pike, Stone, Walthall and Wilkinson counties in the State of Mississippi are eligible to apply for both Physical and Economic Injury Disaster Loans from the SBA.

PNPs located in the neighboring counties of Covington, Greene, Hinds, Jones, Lamar, Perry, Rankin, Simpson, and Warren counties in the State of Mississippi; Mobile and Washington counties in the State of Alabama; and Concordia, East Feliciana, St. Helena, St. Tammany, Tangipahoa, Tensas, Washington and West Feliciana parishes in Louisiana are eligible to apply only for SBA Economic Injury Disaster Loans.

Examples of eligible non-critical PNP organizations include, but are not limited to, food kitchens, homeless shelters, museums, libraries, community centers, schools and colleges.

PNP organizations may borrow up to $2 million to repair or replace damaged or destroyed real estate, machinery and equipment, inventory and other business assets. The SBA also offers mitigation loans to disaster victims up to 20 percent of the verified physical damage. These funds are designed to help borrowers pay for protective measures to minimize damages of the same kind in the future.

For most PNP organizations of all sizes, the SBA offers Economic Injury Disaster Loans to help meet working capital needs, such as ongoing operating expenses. Economic Injury Disaster Loan assistance is available regardless of whether the business suffered any physical property damage.

Interest rates are as low as 4 percent with terms up to 30 years. Loan amounts and terms are set by the SBA and are based upon each applicant's financial condition.

"PNP organizations are urged to contact their county emergency managers to obtain information about local briefings. At the meeting, PNP representatives will provide information about their organization," said Frank Skaggs, Director of SBA Field Operations Center East.

This information will be used to submit a "Request for Public Assistance" which FEMA uses to determine if the PNP provides an essential governmental service and meets the definition of a "critical facility." Based on that conclusion, FEMA will either refer the PNP to SBA for disaster loan assistance or possibly provide a "Public Assistance" reimbursement grant for eligible costs.

Disaster loan information and application forms may be obtained by calling the SBA's Customer Service Center at 1-800-659-2955 (1-800-877-8339 for the hearing-impaired) Monday through Friday from 8 a.m. to 9 p.m., and Saturday and Sunday 9 a.m. to 9 p.m. EDT, or by emailing our customer service center at disastercustomerservice@sba.gov. Loan applications can be downloaded from the SBA's website at www.sba.gov/services/disasterassistance. Completed applications should be mailed to: U.S. Small Business Administration, Processing and Disbursement Center, 14925 Kingsport Road, Fort Worth, TX 76155.

PNPs may visit SBA's secure website at disasterloan.sba.gov/ela/ to apply for disaster loans.

The filing deadline to return applications for physical property damage is November 24, 2008. The deadline to return economic injury applications is June 22, 2009.

For more information about the SBA's Disaster Loan Programs, visit our website at www.sba.gov/services/disasterassistance.

Release Number: 08- 674, MS 11451

U.S. Small Business Administration
Michael Lampton, 404-331-0333