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Small Business Administration offers crucial support to Arkansans recovering from April storms with low-interest disaster loans

Little Rock, Arkansas – The Small Business Administration (SBA) is stepping in to assist those impacted by the severe storms that ravaged Arkansas between April 2 and April 22. The agency announced on Friday that it would provide low-interest disaster loans to small businesses, private nonprofits, and residents across the state who were affected by the storms.

These loans are available for residents in several counties that were hit hardest by the storms, including Clark, Clay, Craighead, Crittenden, Desha, Fulton, Hot Spring, Jackson, Miller, Ouachita, Pulaski, Randolph, Saline, Sharp, St. Francis, and White. With the SBA’s help, Arkansas communities are getting the support they need to rebuild and recover.

Homeowners and renters are eligible for personal property loans of up to $100,000. These loans are designed to replace or repair personal items like clothing, furniture, appliances, and even vehicles that were damaged during the storms. If the storm damage was severe enough, homeowners can apply for loans up to $500,000 to repair or replace their primary residence.

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The SBA is also offering loans that include an added benefit — an increase of up to 20% of the verified physical damages for mitigation improvements. This means that applicants who qualify can use the additional funds to make their homes more disaster-resistant. Eligible improvements can include installing storm windows, weatherstripping doors and windows, insulating pipes, and reinforcing walls or attics. These steps are aimed at helping residents safeguard their homes and property against future disasters.

For small businesses, agricultural cooperatives, nurseries, and private nonprofits, the SBA is offering Economic Injury Disaster Loans (EIDL) to help cover financial losses directly caused by the storms. However, agricultural producers, farmers, and ranchers are not eligible for SBA disaster loans, with the exception of aquaculture enterprises.

Interest rates for SBA disaster loans are determined based on the applicant’s financial condition, but they can be as low as 4% for small businesses, 3.62% for private nonprofits, and 2.75% for homeowners and renters. SBA officials explained that the loans come with favorable terms of up to 30 years, and the repayment process is flexible. In fact, applicants will not have to start paying back their loans until a full year after the first disbursement, allowing some much-needed breathing room during the recovery process.

SBA officials emphasized that the application process is simple and that applicants can apply online at SBA.gov/Disaster. In addition, individuals seeking more information can reach the SBA’s Customer Service Center by calling 800-659-2955 or emailing [email protected]. People who are deaf, hard of hearing, or have speech disabilities can access the service by dialing 7-1-1 for telecommunications relay services.

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Time is of the essence, however, as the deadline to submit applications for physical damage loans is July 21. For those applying for economic injury loans, the deadline is even further out, set for February 23, 2026.

With the financial backing provided by the SBA, communities across Arkansas are receiving much-needed resources to recover and rebuild from the devastation caused by the April storms. As these counties work toward recovery, the SBA’s efforts to provide affordable and accessible financial relief are playing a critical role in the long-term restoration of local businesses, homes, and livelihoods.

 

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