Because of the federal disaster declaration stemming from the drought of last year, applications are due for economic injury disaster loans of up to two million dollars to help meet working capital needs that can be blamed on the drought. The loans can be used to pay fixed debts, payroll accounts payable and other bills that cannot be paid because of the disasters’ impact.
The drought declaration covered all Green Hills counties. Applications can be submitted by small non-farm businesses, small agricultural cooperatives, and most private nonprofits of any size. One month is left for applications to be submitted.
Small Business Administration eligibility covers ag production losses of businesses dependent on farmers and ranchers as well as businesses that were impacted directly by drought. Economic injury assistance is available regardless of any property damage. The interest rate is 3.61 percent for businesses and 2.5 percent for private nonprofits with terms up to 30 years. Loan amounts and terms are set by SBA and are based on each applicant’s financial condition.
Farmers and ranchers should contact the Farm Services Agency about USDA assistance, however, in drought disasters, nurseries are eligible for SBA assistance as well. Applicants may apply online, receive additional information and download applications at Disaster Loan Assistance website. Applicants may also call SBA’s Customer Service Center at (800) 659-2955.