Deadline of SBA Drought Loans Approaching for Hawaii, Montana, and North Dakota

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Francisco Sánchez Jr., deputy administrator of the Small Business Administration's (SBA) Office of Disaster Recovery and Resilience, has reminded small nonagricultural businesses in Hawaii, Montana and North Dakota of the upcoming June 10, 2024 application deadline for SBA federal economic injury disaster loans .

These low-interest loans are intended to mitigate economic losses due to the drought that began on August 15, 2023

Francisco Sánchez Jr. emphasized that small non-agricultural businesses, small agricultural cooperatives, companies operating in aquaculture and most private non-profit organizations of all sizes are eligible to receive EIDDLs (Economic Injury Disaster Loans) of up to $2 million US dollars to apply. These loans are intended to meet working capital needs such as fixed debts, payroll, trade payables and other bills that cannot be paid due to the impact of the disaster.

Important points:

  • Interest charges: 4% for corporations, 2.375% for private non-profit organizations
  • Loan conditions: Up to 30 years, depending on the applicant's financial situation
  • Default: Interest only begins 12 months after the first loan payment
  • Repayment: Starts 12 months after the first payout

“SBA funding eligibility covers both the economic impact on businesses dependent on farmers and ranchers who suffered agricultural production losses due to the disaster and on businesses directly affected by the disaster. Economic Injury Assistance is available regardless of whether the applicant has suffered property damage,” Sánchez said.

Applicants can apply online and access additional disaster assistance information at SBA.gov/disaster. For further assistance, they may contact the SBA Customer Service Center at (800) 659-2955 or email [email protected]. For those who are deaf, hard of hearing, or have a speech impediment, Telecommunications Relay Services can be reached at 7-1-1.

Businesses primarily engaged in agriculture or ranching are not eligible for SBA disaster assistance and should contact the Farm Services Agency for assistance from the U.S. Department of Agriculture.

However, nurseries are eligible for SBA disaster assistance during drought disasters.

For more detailed information and to apply, visit SBA.gov/disaster or contact the SBA Customer Service Center.

Image: Depositphotos