SBA Disaster Loans Available in Florida for Private Non-Profit Organizations
ATLANTA -The U.S. Small Business Administration (SBA) announced today that certain Private Non-Profit organizations (PNPs) in Florida that do not provide critical services of a governmental nature may be eligible to apply for low-interest disaster loans for damages as a result of Hurricane Milton.
Eligible PNP organizations in the counties of Brevard, Charlotte, Citrus, Clay, Collier, DeSoto, Flagler, Glades, Hardee, Hendry, Hernando, Highlands, Hillsborough, Indian River, Lake, Lee, Manatee, Marion, Martin, Okeechobee, Orange, Osceola, Pasco, Pinellas, Polk, Putnam, Sarasota, Seminole, St. Lucie, Sumter, Volusia, and the Miccosukee Tribe of Indians may apply. 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 interest rate is 3.25%, with terms up to 30 years.
On October 15, 2024, it was announced that funds for the Disaster Loan Program have been fully expended. While no new loans can be issued until Congress appropriates additional funding, we remain committed to supporting disaster survivors. Applications will continue to be accepted and processed to ensure individuals and businesses are prepared to receive assistance once funding becomes available.
Applicants are encouraged to submit their loan applications promptly for review in anticipation of future funding.
Applicants may be eligible for a loan amount increase of up to 20 percent of their physical damages, as verified by the SBA, for mitigation purposes. Eligible mitigation improvements might include insulating pipes, walls and attics, weather stripping doors and windows, and installing storm windows to help protect property and occupants from future damage caused by any disaster.
The SBA also offers Economic Injury Disaster Loans (EIDLs) to help meet working capital needs, such as ongoing operating expenses for PNP organizations. EIDL assistance is available regardless of whether the organization suffered any physical property damage.
PNP organizations are urged to contact their county’s Emergency Manager to provide information about their organization. The information will be submitted to FEMA to determine eligibility for a Public Assistance grant or whether the PNP should be referred to SBA for disaster loan assistance.
Applicants may apply online and receive additional disaster assistance information at SBA.gov/disaster. Applicants may also call SBA’s Customer Service Center at (800) 659-2955 or email disastercustomerservice@sba.gov for more information on SBA disaster assistance. For people who
are deaf, hard of hearing, or have a speech disability, please dial 7-1-1 to access telecommunications relay services. The filing deadline to submit applications for physical property damage is Dec. 16, 2024. The deadline to submit economic injury applications is July 16, 2025.
About the U.S. Small Business Administration
The U.S. Small Business Administration helps power the American dream of business ownership. As the only go-to resource and voice for small businesses backed by the strength of the federal government, the SBA empowers entrepreneurs and small business owners with the resources and support they need to start, grow or expand their businesses, or recover from a declared disaster. It delivers services through an extensive network of SBA field offices and partnerships with public and private organizations. To learn more, visit www.sba.gov.
Private Non Profit Organizations SBA and FEMA Disaster Assistance
The Disaster Mitigation Act of 2000 (Public Law 106-390), enacted on October 30, 2000, mandated certain changes in the way Federal financial assistance is delivered to Private Non Profit (PNP) organizations that provide services of a governmental nature. Prior to enactment of the Disaster Mitigation Act of 2000, under a disaster declaration for “Public Assistance” all PNPs that provide services of a governmental nature applied directly to Federal Emergency Management Agency (FEMA) for grant assistance. SBA’s disaster loan program was not activated as a result of such declarations.
Now when the President declares a major disaster that includes, or is limited to, public assistance, a private non profit facility which provides non-critical services of a governmental nature must first apply for disaster assistance from SBA, and exhaust SBA loan assistance, or be declined by SBA before it can seek grant assistance for permanent repairs and/or replacements from the FEMA. (Except that expenses related to debris removal or emergency measures taken to protect their facilities or employees may be reimbursed from FEMA without regard to the availability of an SBA disaster loan.)
PNPs which provide services of a governmental nature and are deemed critical may apply directly to FEMA for uninsured disaster-related expenses and/or disaster-related damages to the facility.
FEMA defines critical services as:
Fire and emergency services Electric power
Water supply & some irrigation Telephone communications
Sewer & wastewater treatment Direct medical care
FEMA defines non-critical services as:
Museums Educational facilities
Zoos Custodial care facilities
Libraries Alcohol & Drug rehabilitation
Community centers Battered Spouse Programs
Homeless shelters Low-income housing
Shelter workshops Food programs for the needy
Senior Citizen Centers Daycare centers for special needs
For additional information you should contact SBA at (1-800- 659-2955) or FEMA at 1-800-621-FEMA.
FREQUENTLY ASKED QUESTIONS
What is a Public Assistance disaster declaration?
A Public Assistance (PA) disaster declaration is a designation made by FEMA upon a request from the governor. It covers among other things disaster damage to the public infrastructure (roads and bridges), and in some cases reimburses municipalities for overtime expenses related to disaster cleanup. Private Non Profit organizations that provide essential services of a governmental nature are also eligible for assistance. Such PNPs that provide non-critical services must first apply to SBA before it can apply to FEMA for grant assistance.
What kind of assistance is available to a PNP from SBA under a PA disaster declaration?
Under SBA’s Physical Disaster Business Loan program, low-interest long term loans to businesses of all sizes, small agricultural cooperatives and most private, non-profit organizations of all sizes to repair or replace disaster-damaged property owned by the business, including real estate, inventories, supplies, machinery and equipment. Businesses of any size are eligible.
Under SBA’s Economic Injury Disaster Loan program (EIDLS) are working capital loans to help small businesses, small agricultural cooperatives, small businesses engaged in aquaculture, and most private, non-profit organizations of all sizes meet their ordinary and necessary financial obligations that cannot be met as a direct result of the disaster. These loans are intended to assist through the disaster recovery period. EIDL assistance is available only to entities and their owners who cannot provide for their own recovery from non-government sources, as determined by the U.S. Small Business Administration (SBA).
What if the PNP provides both critical and non-critical services?
PNPs which operate both critical and non-critical facilities (that provide essential services of a governmental nature) will have to make separate applications to SBA and FEMA.
What if SBA determines that the PNP non-critical facility is not eligible for a disaster loan, or the PNP has obtained the maximum amount for which the SBA determines the facility is eligible?
The PNP may then apply to FEMA for grant assistance for permanent repairs for its unmet disaster-related needs. Such PNPs may apply directly to FEMA for emergency repairs.
Which agency (SBA or FEMA) has the final say on whether the PNP is considered a critical or non-critical facility?
FEMA
Are PNPs in contiguous counties also eligible to apply to SBA for assistance?
No, in a PA only declaration, PNPs in contiguous counties are not eligible to apply.
