SBA urges Puerto Rico nonprofits to apply for disaster loans before Aug. 27
The U.S. Small Business Administration is encouraging private nonprofit organizations in Puerto Rico affected by Tropical Storm Ernesto to apply for federal disaster loans ahead of the Aug. 27 deadline.
The SBA’s Economic Injury Disaster Loan program offers up to $2 million in low-interest financing to help cover working capital needs such as payroll, fixed debts, accounts payable and other operating expenses.
Eligible applicants include nonprofits that provide non-critical services of a governmental nature and experienced financial losses due to the storm, which struck the island Aug. 13-16, 2024.
“Oftentimes it takes a business or nonprofit some time after a disaster to realize the economic impact on the daily operations,” said Matt Coleman, SBA Atlantic regional administrator. “SBA stands by every step of the way to assist in recovery efforts after a devastation such as Tropical Storm Ernesto.”
Eligible municipalities include Aibonito, Añasco, Aguas Buenas, Barranquitas, Canóvanas, Ceiba, Coamo, Comerío, Corozal, Hormigueros, Jayuya, Las Marías, Loíza, Manatí, Maricao, Maunabo, Mayagüez, Naguabo, Orocovis, San Lorenzo, San Sebastián, Santa Isabel, Vega Alta, Vieques, Villalba and Yabucoa.
The loans carry interest rates as low as 3.25% and repayment terms of up to 30 years. Both interest and payments are deferred for 12 months from the initial disbursement.
“SBA loans help eligible small businesses and private nonprofits cover operating expenses after a disaster, which is crucial for their recovery,” said Chris Stallings, associate administrator for the SBA’s Office of Disaster Recovery and Resilience.
Applications can be submitted online or by calling (800) 659-2955.
