The U.S. Small Business Administration (SBA) is reminding small businesses, small agricultural cooperatives, small businesses engaged in aquaculture, and most private nonprofit organizations that the deadline to file for federal working capital loans for drought-related losses is approaching. The filing deadline is July 22, 2024, for losses due to the drought that began on November 14, 2023.
The declaration includes the Alabama counties of Bibb, Calhoun, Chilton, Etowah, Greene, Hale, Shelby, St. Clair, and Talladega, as well as the contiguous counties of Autauga, Blount, Cherokee, Clay, Cleburne, Coosa, Dallas, Dekalb, Elmore, Jefferson, Marengo, Marshall, Perry, Pickens, Sumter, and Tuscaloosa.
Under this declaration, the SBA’s Economic Injury Disaster Loan (EIDL) program is available to eligible farm-related and nonfarm-related entities that suffered financial losses directly due to the drought. While SBA cannot provide disaster loans to agricultural producers, farmers, and ranchers, aquaculture enterprises and nurseries are eligible to apply for loans for losses caused by drought conditions.
Loan amounts can be up to $2 million with interest rates of 4% for small businesses and 3.25% for private nonprofit organizations, with repayment terms of up to 30 years. Eligibility is determined based on the size of the applicant, type of activity, and financial resources. The SBA sets loan amounts and terms based on the applicant’s financial condition. These working capital loans can be used to cover fixed debts, payroll, accounts payable, and other bills that could have been paid if the disaster had not occurred. However, these loans are not intended to replace lost sales or profits.
Applications can be submitted online at SBA.gov/disaster. Additional disaster assistance information is available through the SBA’s Customer Service Center at (800) 659-2955 or via email at disastercustomerservice@sba.gov. For individuals who are deaf, hard of hearing, or have a speech disability, dialing 7-1-1 will provide access to telecommunications relay services.
All completed loan applications must be submitted to the SBA by July 22, 2024.
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