The U.S. Small Business Administration (SBA) has announced 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 in the U.S. Virgin Islands following a presidential disaster declaration for public assistance resulting from severe storms, flooding, rockslides and mudslides associated with Tropical Storm Tomas that occurred on Nov. 8-12.
PNPs located on Saint Croix are eligible to apply to SBA. 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 are urged to contact their county emergency managers to obtain information about local briefings. At the meeting, PNP representatives will need to provide information about their organization,” said Frank Skaggs, director of SBA Field Operations Center East in Atlanta. 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 upon that conclusion, FEMA will possibly provide the PNP with a “Public Assistance” reimbursement grant for their eligible costs or refer the PNP to SBA for disaster loan assistance.
PNP organizations may borrow up to $2 million to repair or replace damaged or destroyed real estate, machinery and equipment, inventory or other business assets. The SBA may increase a loan up to 20 percent of the total amount of disaster damage to real estate and/or leasehold improvements, as verified by SBA, to make improvements that lessen the risk of property damage by future disasters of the same kind.
The SBA also offers Economic Injury Disaster Loans to help meet working capital needs, such as ongoing operating expenses to PNP organizations of all sizes. These disaster loans are available regardless of whether the organization suffered any physical property damage. Interest rates are as low as 3 percent with terms up to 30 years. Loan amounts and terms are set by the SBA and are based on each applicant’s financial condition.
Disaster loan information and application forms can be obtained by calling the SBA’s Customer Service Center at 800-659-2955 (800-877-8339 for people with speech or hearing disabilities) Monday through Friday from 8 a.m. to 6 p.m. ET or by sending an e-mail to disastercustomerservice@sba.gov. Applications can also be downloaded from www.sba.gov. Completed applications should be mailed to: U.S. Small Business Administration, Processing and Disbursement Center, 14925 Kingsport Road, Fort Worth, Texas 76155.
The filing deadline to return applications for physical property damage is Jan. 24, 2011. The deadline to return economic injury applications is Aug. 24, 2011.
