Local non-profits that provide essential services may qualify for federal disaster loans

Pago Pago, AMERICAN SAMOA — The U.S. Small Business Administration (SBA) is now making available low-interest federal disaster loans to “certain private nonprofit organizations” in American Samoa following President Biden’s federal disaster declaration issued last week as a result of high surf, high winds and flooding that occurred in the territory from July 12 -15, 2022.

In announcing yesterday the funds availability, SBA Administrator Isabella Casillas Guzman explained that private nonprofits that provide essential services of a governmental nature are eligible for assistance.

SBA’s director for Disaster Field Operations Center-West, Tanya N. Garfield said that private nonprofit organizations should contact Salu Tuigamala, deputy director of ASG’s Office of Disaster Assistance and Petroleum Management (ODAPM) by calling (684)699-1330, emailing [email protected] or visiting https://odapm.as.gov/public-assistance “to obtain information about applicant briefings.”

“At the briefings, private nonprofit representatives will need to provide information about their organization,” Garfield said and noted that the U.S Federal Emergency Management Agency (FEMA) will use that information to determine if the private nonprofit provides an “essential governmental service” and is a “critical facility” as defined by federal law.

If so, FEMA may provide the private nonprofit with a Public Assistance grant for their eligible costs; but if not, FEMA may refer the private nonprofit to SBA for disaster loan assistance.

SBA said it may lend private nonprofits up to $2 million to repair or replace damaged or destroyed real estate, machinery and equipment, inventory and other business assets. SBA can also lend additional funds to help with the cost of improvements to protect, prevent or minimize the same type of disaster damage from occurring in the future.

For certain private nonprofit organizations of any size, SBA offers Economic Injury Disaster Loans to help with meeting working capital needs caused by the disaster. These loans may be used to pay fixed debts, payroll, accounts payable and other bills that cannot be paid because of the disaster’s impact.

“Economic injury assistance is available regardless of whether the nonprofit suffered any property damage,” said SBA, which points out that the interest rate is 1.875 percent with terms up to 30 years.

The deadline to apply for property damage is Nov. 14, 2022 while the deadline to apply for economic injury is June 15, 2023.

Applicants may apply online, receive additional disaster assistance information and download applications at https://disasterloanassistance.sba.gov/. Applicants may also call SBA’s Customer Service Center at (800) 659-2955 or email [email protected] for more information on SBA disaster assistance.