In the wake of severe storms and tornadoes that swept across parts of Arkansas on March 14-15, the U.S. Small Business Administration (SBA) has announced the availability of low-interest federal disaster loans for small businesses, private nonprofits, homeowners, and renters. This follows a Presidential disaster declaration issued on May 8.
The affected counties include Greene, Hot Spring, Independence, Izard, Jackson, Lawrence, Randolph, Sharp, and Stone.
Arkansas businesses and nonprofits can apply for loans of up to $2 million to repair or replace damaged real estate, equipment, inventory, and other assets. Homeowners may borrow up to $500,000 for primary residence repairs, while renters and homeowners alike can apply for up to $100,000 to replace personal property such as vehicles, furniture, or appliances.
The SBA is also offering Economic Injury Disaster Loans (EIDL) to eligible small businesses, agricultural cooperatives, and certain nonprofits to help meet working capital needs caused by the disaster—even if no physical damage occurred. These funds may cover expenses like payroll, bills, and fixed debts.
An important component of the program includes mitigation funding. Applicants may qualify for a loan increase of up to 20% of verified damages to make improvements that reduce future storm risks—such as upgrading insulation, installing storm windows, or weather-proofing homes and facilities.
Interest rates are as low as 2.75% for homeowners and renters, 3.62% for nonprofits, and 4% for small businesses. Loan terms can extend up to 30 years, with no payments or interest accrual for the first 12 months.
Disaster Recovery Centers will soon open in impacted areas, where SBA representatives will offer in-person assistance. Those affected are encouraged to apply online at sba.gov/disaster or call the SBA Customer Service Center at (800) 659-2955. TTY users can dial 7-1-1.
