The deadline for SBA working capital loans due to drought is fast approaching. Businesses in six states have until November 5, 2021 to apply for an SBA federal disaster loan for economic injury. These businesses can use the Economic Injury Disaster Loans (EIDL) to pay fixed debts, payroll, accounts payable, and other bills.
The Looming EIDL Deadline for Drought Relief
With only a couple of weeks to the November 5 deadline, the loans are designed to help businesses suffering economic losses brought on by the drought that began on January 1, 2021. This includes the following counties and states:
- Primary Utah Counties: Beaver, Box Elder, Carbon, Duchesne, Emery, Garfield, Grand, Iron, Juab, Kane, Millard, San Juan, Sevier, Tooele, Uintah, Washington and Wayne
- Utah counties: Cache, Daggett, Davis, Piute, Salt Lake, Sanpete, Summit, Utah, Wasatch and Weber
- Arizona counties: Apache, Coconino, Mohave and Navajo
- Colorado counties: Dolores, Garfield, Mesa, Moffat, Montezuma, Montrose, Rio Blanco and San Miguel
- Idaho counties: Cassia and Oneida
- Nevada counties: Elko, Lincoln and White Pine
- New Mexico county: San Juan
The SBA makes EIDL funds available when the U.S. Secretary of Agriculture designates an agricultural disaster. In this case, the declaration for the disaster was announced on March 5, 2021, by the Secretary.
The Director of the U.S. Small Business Administration’s Disaster Field Operations Center-West, Tanya N. Garfield, said small nonfarm businesses, small agricultural cooperatives, small businesses engaged in aquaculture, and most private nonprofit organizations of any size may apply for EIDL.
Garfield says these businesses can apply for loans of up to $2 million to address working capital needs caused by the disaster. This includes not being able to pay their bills because of the impact the disaster is responsible for.
Garfield goes on to say, “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.”
When a business applies for the EIDL, they get a 3% interest rate, and it goes down to 2% for private nonprofit organizations with terms up to 30 years for both. Taking into account the financial state of each applicant, the SBA sets the loan amount and term for each applicant.
The SBA also points out businesses primarily engaged in farming or ranching are not eligible for SBA disaster assistance. Those in agricultural enterprises should contact the Farm Services Agency about the U.S. Department of Agriculture.
You can get disaster assistance information, download applications, and apply online at https://disasterloanassistance.sba.gov/.
You can also call the SBA’s Customer Service Center at (800) 659-2955 or email them at [email protected].
If you are deaf or hard of hearing you may call (800) 877-8339.
Completed applications should be mailed to U.S. Small Business Administration, Processing and Disbursement Center, 14925 Kingsport Road, Fort Worth, TX 76155.
This article, “Deadline Approaching to Apply for EIDL Loans for Drought Emergency” was first published on Small Business Trends
Source: Small Business Trends