Francisco Sánchez Jr., the associate administrator for the Office of Disaster Recovery and Resilience at the Small Business Administration (SBA), is urging small nonfarm businesses in Hawaii, Montana, and North Dakota to take advantage of the upcoming deadline to apply for federal disaster loans for economic injury. The deadline for these loans is June 10, 2024.
These low-interest loans are specifically designed to help businesses mitigate economic losses resulting from the drought that began on August 15, 2023. 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.
Key points to note about these loans include the interest rates, which are 4% for businesses and 2.375% for private nonprofit organizations. The loan terms can be up to 30 years, based on the applicant’s financial condition, and 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.
Sánchez emphasized that economic injury assistance is available regardless of whether the applicant suffered any property damage. 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. Businesses primarily engaged in farming or ranching should contact the Farm Services Agency for assistance, while nurseries are eligible for SBA disaster assistance in drought disasters.
For more detailed information and to apply for these loans, interested parties are encouraged to visit SBA.gov/disaster or contact the SBA’s Customer Service Center.