DisastersSBA offers loans to nonprofits in Vermont

The Small Business Administration (SBA) just announced today that certain private non-profit organizations (PNPs) in Vermont could qualify for special low-interest federal disaster loans.

The announcement comes following the presidential disaster declaration in counties severely affected by the devastating storms and flooding that occurred in late April and early May.

SBA said that PNPs not providing critical services of a government nature in Addison, Chittenden, Essex, Franklin, Grand Isle, Lamoille, Orleans, and Washington counties are eligible for Physical and Economic Injury Disaster Loans.

Nonprofits that apply for loans will be vetted by FEMA to ensure that the organization provides an essential governmental service and meets FEMA’s definition of a “critical facility.” Depending on FEMA’s conclusion, the nonprofit could be eligible for a public assistance reimbursement grant to cover eligible costs or a SBA loan for disaster assistance.

SBA added that certain PNPs that provide non-critical services are also eligible to apply. Non-critical services include food kitchens, homeless shelters, libraries, and community centers.

Federal aid to PNPs include up to $2 million in loans to repair or replace damaged real estate, equipment, inventory, or other critical business assets. Interest rates can be as low as 3 percent for as long as thirty years, but the terms of each loan varies based on each application.