Kipnuk businesses can still apply for SBA disaster loans after 2024 storm losses

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Kipnuk SBA disaster loans 2024

Highlights

Kipnuk small businesses, cooperatives, and nonprofits can apply for SBA Economic Injury Disaster Loans up to $2 million at interest rates as low as 4%.
Completed applications are due by June 8, with a 60-day grace period allowed for late filings; interest and payments start 12 months after disbursement.
The program targets financial losses from Aug. 16–18, 2024 storm and flooding, but excludes farmers and ranchers except aquaculture enterprises.

Loan terms and application timeline

As reported by the U.S. Small Business Administration, the disaster declaration covers the Native Village of Kipnuk and keeps its Economic Injury Disaster Loan program open to eligible small businesses, small agricultural cooperatives and private nonprofits, including faith-based organizations.

The financing is intended to cover working capital needs caused by the disaster, even when an applicant did not sustain physical damage. Funds may be used for fixed debts, payroll, accounts payable and other bills that could not be paid because of the storm and flooding.

Loan amounts can reach up to $2 million, with interest rates as low as 4% for businesses and 3.25% for private nonprofits, and terms of up to 30 years. Interest does not begin to accrue, and payments are not due, until 12 months after the first loan disbursement, with final terms based on each applicant's financial condition.

Completed applications must be submitted by June 8. After that date, the SBA says it will still accept applications during a 60-day grace period.

Recovery support for rural Alaska

The program is aimed at organizations facing financial losses directly linked to the Aug. 16 to 18, 2024 severe storm and flooding in Kipnuk. The SBA says it cannot provide disaster loans to agricultural producers, farmers or ranchers under this declaration, except for aquaculture enterprises.

Chris Stallings, associate administrator of the Office of Disaster Recovery and Resilience at the SBA, says the rural declaration is designed to help communities recover by extending financial assistance to affected businesses and nonprofits. The reminder underscores continuing federal support for rural Alaska entities still dealing with the economic effects of last year's disaster.

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