Francisco Sánchez Jr., associate administrator for the Office of Disaster Recovery and Resilience at the Small Business Administration (SBA), has issued a reminder for small nonfarm businesses in Hawaii, Montana, and North Dakota about the approaching June 10, 2024 deadline to apply for SBA federal disaster loans for economic injury.
These low-interest loans are designed to mitigate economic losses due to the drought that began on August 15, 2023
Francisco Sánchez Jr. emphasized that small nonfarm businesses, small agricultural cooperatives, businesses engaged in aquaculture, and most private nonprofit organizations of any size are eligible to apply for Economic Injury Disaster Loans (EIDLs) of up to $2 million. These loans are intended to cover working capital needs such as fixed debts, payroll, accounts payable, and other bills that cannot be paid due to the disaster’s impact.
Key Points:
- Interest Rates: 4% for businesses, 2.375% for private nonprofit organizations
- Loan Terms: Up to 30 years, based on the applicant’s financial condition
- Accrual: Interest does not begin to accrue until 12 months from the date of the initial loan disbursement
- Repayment: Begins 12 months from the first disbursement
“SBA eligibility covers both the economic impacts on businesses dependent on farmers and ranchers that have suffered agricultural production losses caused by the disaster and businesses directly impacted by the disaster. Economic injury assistance is available regardless of whether the applicant suffered any property damage,” said Sánchez.
Applicants can apply online and access additional disaster assistance information at SBA.gov/disaster. For further assistance, they can contact the SBA’s Customer Service Center at (800) 659-2955 or email disastercustomerservice@sba.gov. For individuals who are deaf, hard of hearing, or have a speech disability, the telecommunications relay services can be accessed by dialing 7-1-1.
Businesses primarily engaged in farming or ranching are not eligible for SBA disaster assistance and should contact the Farm Services Agency regarding U.S. Department of Agriculture assistance.
Nurseries, however, are eligible for SBA disaster assistance in drought disasters.
For more detailed information and to apply, visit SBA.gov/disaster or contact SBA’s Customer Service Center.
Image: Depositphotos
This article, “Deadline of SBA Drought Loans Approaching for Hawaii, Montana, and North Dakota” was first published on Small Business Trends