News Summary
Alabama businesses and private nonprofits affected by heavy rainfall can apply for low-interest federal disaster loans from the SBA. The EIDL program offers loans up to $2 million with favorable terms, including no interest for the first year. Various counties in Alabama and parts of neighboring states are eligible. The application deadline is set for May 15, 2026, ensuring assistance for recovery and resilience amidst the challenges faced by local entities.
Alabama businesses and private nonprofit organizations impacted by excessive rainfall from May 1 to June 30, 2025, are eligible to apply for low-interest federal disaster loans as announced by the U.S. Small Business Administration (SBA). This initiative aims to provide financial relief to those most affected in Alabama, along with portions of Georgia, Mississippi, and Tennessee, following a disaster declaration covering numerous counties in these states.
The SBA’s Economic Injury Disaster Loan (EIDL) program specifically caters to small businesses and eligible private nonprofits that have experienced financial losses due to the recent rainfall. Agricultural producers, farmers, and ranchers generally do not qualify for this program; however, aquaculture enterprises are an exception.
Loans can reach up to $2 million, with interest rates set at 4% for small businesses and 3.625% for private nonprofits. Loan terms can be extended for as many as 30 years, and notably, interest will not accrue during the first 12 months, with no payments required until that time has elapsed. This measure is designed to ease the financial burden on businesses as they recover from the disaster impacts.
Applications for the loan program can be submitted online at the official SBA disaster page. Additionally, the SBA’s Customer Service Center is available to assist applicants at (800) 659-2955. The deadline for submitting applications for economic injury assistance is May 15, 2026.
Support for Small Businesses
The SBA has emphasized its commitment to supporting small businesses in times of crisis, aiming not just for recovery but also for future resilience. The Office of Disaster Recovery and Resilience plays a crucial role in managing active disaster zones and aiding in the recovery processes, ensuring that necessary resources are accessible to affected entities.
To prepare for potential disasters, businesses are encouraged to gather requisite documentation ahead of time to streamline the application process when the need arises.
Long-Term Recovery Efforts
The EIDL program’s goal extends beyond immediate financial relief, focusing on helping businesses stand firm and thrive amid challenges. By providing long-term loan options and favorable terms, the SBA aims to bolster the economic infrastructure of affected communities, promoting a more resilient business ecosystem in Alabama and neighboring regions.
In summary, the SBA’s new disaster loan initiative opens crucial financial pathways for affected small businesses and nonprofit organizations, amplifying recovery efforts and ensuring ongoing support amid challenges faced by Alabama and surrounding states.
Deeper Dive: News & Info About This Topic
- ABC3340: SBA Offers Disaster Loans to Alabama Businesses
- Wikipedia: Disaster Relief
- Yellowhammer News: Small Business Administration in Alabama
- Google Search: Disaster Loans Alabama
- AL.com: Feds Open Emergency Loans to Alabamians
- Google Scholar: Disaster Loan Programs
- Gulf Coast Media: Federal Aid for Alabama Businesses
- Encyclopedia Britannica: SBA Loans
- Made In Alabama: Gov. Ivey on SBA COVID-19 Disaster Loans
- Google News: Small Business Disaster Assistance
Author: STAFF HERE BIRMINGHAM WRITER
The BIRMINGHAM STAFF WRITER represents the experienced team at HEREBirmingham.com, your go-to source for actionable local news and information in Birmingham, Jefferson County, and beyond. Specializing in "news you can use," we cover essential topics like product reviews for personal and business needs, local business directories, politics, real estate trends, neighborhood insights, and state news affecting the area—with deep expertise drawn from years of dedicated reporting and strong community input, including local press releases and business updates. We deliver top reporting on high-value events such as the Sidewalk Film Festival, Sloss Music & Arts Festival, Magic City Classic, and civil rights commemorations. Our coverage extends to key organizations like the Birmingham Business Alliance and the Birmingham Civil Rights Institute, plus leading businesses in healthcare, finance, and manufacturing that power the local economy such as UAB Medicine, Regions Bank, and Encompass Health. As part of the broader HERE network, including HEREHuntsville.com, we provide comprehensive, credible insights into Alabama's dynamic landscape.
