Deadline approaching for SBA loans due to drought
The US Small Business Administration is reminding small, non-farm businesses in 64 counties, including Grand, to apply for an SBA federal disaster loan before the Nov. 5 deadline.
Disaster Field Operations Center-West Director Tanya Garfield said in a release that 64 counties in Colorado and neighboring counties in Arizona, Kansas, Nebraska, New Mexico, Oklahoma, Utah and Wyoming qualify for low interest loans to offset economic losses because of reduced revenues caused by drought since Nov. 1, 2020.
According to Garfield, small non-farm businesses, small agricultural cooperatives, small businesses engaged in aquaculture and most private nonprofit organizations of any size may apply for Economic Injury Disaster Loans of up to $2 million to help meet working capital needs caused by the disaster.
“Economic Injury Disaster Loans may be used to pay fixed debts, payroll, accounts payable and other bills that cannot be paid because of the disaster’s impact,” Garfield said. “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.”
The interest rate is 3% for businesses and 2% for private nonprofit organizations with terms up to 30 years. Loan amounts and terms are set by SBA and are based on each applicant’s financial condition.
By law, SBA makes Economic Injury Disaster Loans available when the U.S. Secretary of Agriculture designates an agricultural disaster. The Secretary declared this disaster on March 5.
Businesses primarily engaged in farming or ranching are not eligible for SBA disaster assistance. Agricultural enterprises should contact the Farm Services Agency about the U.S. Department of Agriculture assistance made available by the Secretary’s declaration. However, nurseries are eligible for SBA disaster assistance in drought disasters.
Applicants may apply online, receive additional disaster assistance information and download applications at disasterloanassistance.sba.gov. Applicants can also call SBA’s Customer Service Center at 800-659-2955 or email email@example.com for more information on SBA disaster assistance. Individuals who are deaf or hard of hearing may call 800-877-8339.
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