OHIO VALLEY — The U.S. Small Business Administration (SBA) announced this week that certain Private Non-Profit Organizations (PNPs) in Ohio 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 as a result of a Presidential disaster declaration for public assistance resulting from damages caused by the severe storms and winds that occurred on June 29 through July 2, 2012.
PNPs located in Adams, Allen, Athens, Auglaize, Belmont, Champaign, Clark, Coshocton, Fairfield, Franklin, Gallia, Guernsey, Hancock, Hardin, Harrison, Highland, Hocking, Jackson, Knox, Lawrence, Licking, Logan, Meigs, Miami, Monroe, Morgan, Morrow, Muskingum, Noble, Paulding, Perry, Pickaway, Pike, Putnam, Shelby, Van Wert and Washington counties in Ohio that provide non-critical services are eligible to 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 are urged to contact Ohio Emergency Management 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.
The 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 may 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 and 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. Economic Injury Disaster Loan assistance is available regardless of whether the organization suffered any physical property damage.
Interest rates are as low as three percent with terms up to 30 years. The SBA sets the loan amounts and terms based on each applicant’s financial condition.