Low-interest loans offered by the U.S. Small Business Administration
The U.S. Small Business Administration (SBA), under the leadership of Director Tanya N. Garfield of SBA’s Disaster Field Operations Centre-West, has announced that small nonfarm businesses in 33 counties across Missouri, Illinois, and Iowa can now apply for low-interest federal disaster loans. These loans aim to mitigate the economic losses experienced due to reduced revenues caused by a recent drought, which began on May 30.
Eligible Counties
Eligible counties in Missouri include Adair, Callaway, Clark, Henry, Johnson, Knox, Lewis, Miller, Schuyler, and Scotland. Furthermore, neighbouring Missouri counties such as Audrain, Bates, Benton, Boone, Camden, Cass, Cole, Jackson, Lafayette, Linn, Macon, Maries, Marion, Moniteau, Montgomery, Morgan, Osage, Pettis, Pulaski, Putnam, Saint Clair, Shelby, and Sullivan are also covered. In addition, neighbouring Illinois counties Adams and Hancock, as well as neighbouring Iowa counties Appanoose, Davis, Lee, and Van Buren, are included in the eligibility area.
Loan Eligibility and Details
Director Tanya N. Garfield emphasized that SBA eligibility extends to businesses affected by the drought’s impact on farmers and ranchers, as well as businesses directly impacted by the disaster. Small nonfarm businesses, small agricultural cooperatives, small businesses engaged in aquaculture, and most private nonprofit organizations, regardless of size, may qualify for Economic Injury Disaster Loans of up to $2 million. These loans are intended to assist in meeting financial obligations and operating expenses that would have been manageable had the disaster not occurred.
It is important to note that eligibility for these loans is based solely on the financial impact of the disaster and not on any physical property damage. The loans come with an interest rate of 4 percent for businesses and 2.375 percent for private nonprofit organizations, a maximum term of 30 years, and are available to small businesses and most private nonprofits that lack the financial means to recover from the adverse impact without hardship.
Agricultural Assistance and Application
The availability of Economic Injury Disaster Loans is triggered when the U.S. Secretary of Agriculture designates an agricultural disaster, which occurred on June 5 in this case. Businesses primarily engaged in farming or ranching are not eligible for SBA disaster assistance. These agricultural enterprises should instead contact the Farm Services Agency to inquire about the assistance provided by the U.S. Department of Agriculture, following the Secretary’s declaration. However, nurseries can still apply for SBA disaster assistance in the case of drought disasters.
Application and Contact Information
Interested applicants can apply online, access additional disaster assistance information, and download applications at https://disasterloanassistance.sba.gov/. For further information on SBA disaster assistance, individuals may call the SBA Customer Service Centre at (800) 659-2955 or send an email to disastercustomerservice@sba.gov. Individuals who are deaf, hard of hearing, or have a speech disability can access telecommunications relay services by dialling 7-1-1. Completed applications should be mailed to the U.S. Small Business Administration, Processing and Disbursement Centre, located at 14925 Kingsport Road, Fort Worth, TX 76155.
The deadline for economic injury applications is set for February 5, 2024.
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