News Summary
In response to excessive rainfall between May 1 and June 30, 2025, the U.S. Small Business Administration has activated the Economic Injury Disaster Loan program for Alabama businesses and nonprofits. This program provides low-interest loans up to $2 million to assist those impacted financially. These loans are designed to aid working capital needs regardless of physical property damage, with repayment terms of up to 30 years. Applications are open until May 15, 2026, offering essential support to affected organizations during hurricane season.
Alabama businesses and nonprofit organizations impacted by excessive rainfall between May 1 and June 30, 2025, can now benefit from low-interest federal disaster loans offered by the U.S. Small Business Administration (SBA). This initiative aims to assist those in multiple counties across Alabama, as well as parts of Georgia, Mississippi, and Tennessee, that experienced financial losses due to the disaster.
The SBA’s Economic Injury Disaster Loan (EIDL) program has been activated, extending its reach to eligible small businesses, small agricultural cooperatives, nurseries, and private nonprofits that suffered adverse financial effects from the recent rainfall. However, it is important to note that agricultural producers, farmers, and ranchers typically do not qualify for these loans, with the lone exception being aquaculture enterprises.
These low-interest loans are designed to address working capital needs that arose from the disaster, irrespective of whether the businesses or nonprofits suffered physical damage to their properties. The loans can be substantial, with amounts available up to $2 million. Depending on the type of organization, interest rates can be as low as 4% for small businesses and 3.625% for private nonprofits.
Loan terms are generous, allowing for repayment periods of up to 30 years. Borrowers also benefit from a deferred repayment plan, where interest does not accrue, and payments are postponed for the first 12 months from the date of the first loan disbursement. This provision provides valuable breathing room for organizations trying to stabilize financially after the disaster.
Applications for these Economic Injury Disaster Loans can be easily submitted online at sba.gov/disaster or by reaching out to the SBA’s Customer Service Center at (800) 659-2955. The deadline for submitting applications for economic injury is May 15, 2026, giving affected organizations ample time to seek assistance.
The SBA is also urging the public to remain vigilant as hurricane season is currently underway. The National Oceanic and Atmospheric Administration (NOAA) has predicted a busy Atlantic hurricane season, forecasting as many as 19 named storms and potentially up to nine hurricanes, which could further impact businesses and communities in the region.
The SBA’s Office of Disaster Recovery and Resilience is actively managing operations in nearly 30 active disaster zones, overseeing over 200 Economic Injury Disaster Loan declarations. This robust response underlines the SBA’s commitment to providing support during natural calamities and ensuring that small businesses and nonprofit organizations have the resources they need to recover and thrive.
This announcement comes at a crucial time as communities deal with the aftermath of excessive rainfall and prepare for the challenges that hurricane season may impose. Affected businesses and nonprofits in Alabama and neighboring states are encouraged to explore the available assistance and take proactive measures to safeguard their operations.
Deeper Dive: News & Info About This Topic
- ABC3340: SBA Offers Disaster Loans to Alabama Businesses Hit by Excessive Rainfall
- Wikipedia: Disaster relief
- Yellowhammer News: Small Business Administration in Alabama Hurricane Season
- Google Search: small business disaster loans
- AL.com: Feds Open Emergency Loans to Alabamians in 38 Drought-Hit Counties
- Google Scholar: disaster loans alabama
- Gulf Coast Media: Federal Aid Available for Alabama Businesses, Nonprofits, and Farmers Hit by Drought
- Encyclopedia Britannica: Disaster management
- Made in Alabama: Alabama Small Businesses Can Seek SBA COVID-19 Disaster Loans
- Google News: Alabama SBA disaster loans
Author: STAFF HERE HUNTSVILLE WRITER
The HUNTSVILLE STAFF WRITER represents the experienced team at HEREHuntsville.com, your go-to source for actionable local news and information in Huntsville, Madison 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 Panoply Arts Festival, Rocket City Brewfest, and Huntsville Comic & Pop Culture Expo. Our coverage extends to key organizations like the Huntsville/Madison County Chamber of Commerce and HudsonAlpha Institute for Biotechnology, plus leading businesses in aerospace, defense, and manufacturing that power the local economy such as Boeing, SAIC, and Mazda Toyota Manufacturing. As part of the broader HERE network, including HEREBirmingham.com, we provide comprehensive, credible insights into Alabama's dynamic landscape.
