Deadline Approaches for SBA Drought Working Capital Loans | Community
SACRAMENTO, Calif. – Director Tanya N. Garfield of the U.S. Small Business Administration‘s Disaster Field Operations Center-West today reminded small nonfarm businesses in 32 counties in South Dakota and neighboring counties in Iowa, Minnesota and Nebraska the March 14, 2022 deadline to apply for a federal SBA disaster loan for economic harm.
These low-interest loans are to offset economic losses due to reduced incomes caused by the drought in the following major counties which began on July 6, 2021.
• Main counties in South Dakota: Beadle, Davison, Hutchinson, Jerauld, Kingsbury, McCook, Miner, Minnehaha, Sanborn, Tripp and Turner;
• Neighboring counties in South Dakota: Aurora, Bon Homme, Brookings, Brule, Buffalo, Charles Mix, Clark, Clay, Douglas, Gregory, Hamlin, Hand, Hanson, Lake, Lincoln, Lyman, Mellette, Moody, Spink, Todd and Yankton;
• Neighboring county of Iowa: Lyon;
• Neighboring counties in Minnesota: Pipestone and Rock;
• Neighboring Nebraska counties: Cherry and Keya Paha.
According to Garfield, small non-farm businesses, small agricultural cooperatives, small businesses engaged in aquaculture and most private non-profit organizations of any size can apply for economic disaster loans of up to $2 million. to help meet working capital needs caused by the disaster. “Economic disaster loans can be used to pay fixed debts, payroll, accounts payable and other bills that cannot be paid due to the impact of the disaster,” Garfield said.
The interest rate is 2.88% for corporations and 2% for private non-profit organizations with terms up to 30 years. Loan amounts and terms are set by the SBA and are based on each applicant’s financial situation.
By law, the SBA makes economic disaster loans available when the United States Secretary of Agriculture designates an agricultural disaster. The Secretary declared this disaster on July 12, 2021.
Businesses whose primary business is agriculture or ranching are not eligible for SBA disaster relief. Agricultural businesses should contact the Farm Services Agency about the United States Department of Agriculture assistance made available by the Secretary’s Statement. However, nurseries are eligible for SBA disaster assistance in the event of a drought.
Applicants can apply online, receive additional disaster assistance information, and download applications at https://disasterloanassistance.sba.gov/. Applicants may also call the SBA Customer Service Center at (800) 659-2955 or email email@example.com for more information about SBA disaster assistance. For people who are deaf, hard of hearing or have a speech impediment, dial 7-1-1 to access telecommunications relay services. Completed applications should be mailed to US Small Business Administration, Processing and Disbursement Center, 14925 Kingsport Road, Fort Worth, TX 76155.