The U.S. Small Business Administration (SBA) continues to offer disaster assistance loans to eligible private nonprofit organizations impacted by severe storms and flooding in California. Specifically, the Morongo Band of Mission Indians and nonprofits within that region are currently able to apply for Economic Injury Disaster Loans (EIDLs), though funding availability remains contingent on Congressional action.
The SBA initially authorized these loans following severe storms and flooding that occurred between and . The loans are designed to help these organizations recover from economic losses, even if they did not sustain any physical damage to property. Eligible nonprofits must provide essential governmental services to qualify.
EIDLs can be used to cover a range of working capital needs, including fixed debts, payroll, accounts payable, and other bills that would have been paid in the absence of the disaster. This flexibility is intended to help organizations maintain operations and continue providing critical services to their communities during a period of financial strain.
The current interest rate for these EIDLs is 3.25%, with repayment terms extending up to 30 years. However, interest does not begin to accrue until 12 months after the initial disbursement of the loan, and repayment does not begin until the same timeframe. Loan amounts and specific terms are determined by the SBA on a case-by-case basis, taking into account the applicant’s financial condition.
Despite the ongoing availability of the application process, a significant hurdle exists: funds for the Disaster Loan Program were fully expended as of . The SBA is continuing to accept and process applications, but the agency explicitly states that no new loans can be issued until Congress allocates additional funding. This creates a period of uncertainty for potential borrowers, who may submit applications but face a delay in receiving assistance.
Francisco Sánchez, Jr., associate administrator for the Office of Disaster Recovery and Resilience at the SBA, emphasized the importance of these loans, stating that Working capital loans from the SBA are essential to eligible small businesses affected by the incident
. He further noted that These loans help sustain local economies when a disaster occurs.
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The SBA’s disaster loan program is a key component of the federal government’s efforts to support businesses and nonprofits in the wake of natural disasters. The program aims to reduce lender risk and make funding more accessible to those who need it most. Beyond EIDLs, the SBA offers a variety of other loan programs designed to help small businesses start, grow, and recover from challenges. Information on these programs can be found on the SBA website.
The situation highlights the ongoing need for disaster preparedness and funding mechanisms to support communities affected by extreme weather events. While the SBA is actively working to assist those impacted by the January/February 2024 storms, the lack of available funds underscores the importance of proactive Congressional action to ensure the long-term viability of the Disaster Loan Program. The deadline to apply for these loans was .
For businesses and nonprofits seeking broader funding options, resources are available through the U.S. Chamber of Commerce and other organizations. These resources include information on grants, loans, and other programs designed to benefit small businesses. The availability of grants specifically for nonprofits is also increasing, with NerdWallet recently publishing guidance on securing free funding in 2025.
The SBA encourages interested organizations to utilize Lender Match, a tool that connects potential borrowers with participating lenders. Creating an account is required to begin the application process for SBA-backed loans. The agency also emphasizes the importance of being prepared to receive assistance once funding becomes available, suggesting that submitting applications now, even without immediate funding, is a prudent step for eligible organizations.
