SBA offers low-interest loans to April storm victims
DeSoto County residents who had damage from severe storms and tornadoes that went through parts of the county, along with Tate, Tunica, Marshall, Lafayette, Union, Benton and Panola counties between April 2-6 may be eligible for disaster loan payments through the Small Business Administration.
Arleace Green, public affairs specialist with the SBA, presented the program to DeSoto County supervisors this week in Hernando. Close to 40 homes and one business were affected by the storm system that went through in the five-day period.
“Any homeowners, renters, or landlords or businesses that suffered any physical damages can apply for a low interest rate, ” Green said. “With that loan, they can get through the recovery period, take care of high interest, or credit cards that they may have had to take out to clear any debris, or fix any damages. Businesses may have needed to make payroll or just meet the upkeep of the business operations.”
The National Weather Service confirmed at least 14 tornadoes touched down in Mississippi between April 2 and April 6. An EF3 tornado struck Slayden in Marshall County on April 3, causing significant damage to homes and businesses. Marshall County reported the most structural damage in the state, with at least 88 homes and one business affected.
Another EF3 tornado impacted Senatobia in Tate County on April 3, resulting in the destruction of multiple homes.
“The deadline to apply for the physical damages is July 7, 2025 and the economic injury deadline is Feb. 9, 2026,” Green said. “We give the business that long span of time, because sometimes it takes a business six months to a year before they know they have been impacted. So we give them that long span to recognize that they have been impacted.”
(SBA) issued a disaster declaration in response to a request received from Gov. Tate Reeves on May 6. The declaration covers the counties of Benton, DeSoto, Lafayette, Marshall, Panola, Tate, Tunica, and Union in Mississippi. Fayette and Shelby counties in Tennessee are eligible for both physical damage loans and Economic Injury Disaster Loans (EIDLs) from the SBA.
Small businesses and private nonprofits are eligible to apply for business physical disaster loans and may borrow up to $2 million to repair or replace disaster-damaged or destroyed real estate, machinery and equipment, inventory, and other business assets.
Homeowners and renters are eligible to apply for home and personal property loans and may borrow up to $100,000 to replace or repair personal property, such as clothing, furniture, cars, and appliances. Homeowners may apply for up to $500,000 to replace or repair their primary residence.
Applicants may also be eligible for a loan increase of up to 20 percent of their physical damage, as verified by the SBA, for mitigation purposes. Eligible mitigation improvements include strengthening structures to protect against high wind damage, upgrading to wind rated garage doors, and installing a safe room or storm shelter to help protect property and occupants from future damage.
“One distinct advantage of SBA’s disaster loan program is the opportunity to fund upgrades reducing the risk of future storm damage,” said Chris Stallings, associate administrator of the Office of Disaster Recovery and Resilience at the SBA. “I encourage businesses and homeowners to work with contractors and mitigation professionals to improve their storm readiness while taking advantage of SBA’s mitigation loans.”
SBA’s EIDL program is available to small businesses, small agricultural cooperatives and private nonprofit (PNP) organizations with financial losses directly related to the disaster. The SBA is unable to provide disaster loans to agricultural producers, farmers, or ranchers, except for small aquaculture enterprises.
EIDLs are for working capital needs caused by the disaster and are available even if the business did not suffer any physical damage. They may be used to pay fixed debts, payroll, accounts payable, and other bills not paid due to the disaster.
Interest rates are as low as four percent for small businesses, 3.62 percent for PNPs, and 2.75 percent for homeowners and renters, with terms up to 30 years. Interest does not begin to accrue, and payments are not due, until 12 months from the date of the first loan disbursement. The SBA sets loan amounts and terms, based on each applicant’s financial condition.
