Francisco Sánchez, Jr., Associate Administrator for the Office of Disaster Recovery and Resilience at the Small Business Administration (SBA), today reminded small nonfarm businesses in 14 Missouri counties of the March 25, 2024, deadline to apply for an SBA federal disaster loan for economic injury. These low-interest loans aim to offset economic losses due to reduced revenues caused by the drought that began on July 18, 2023, in the following counties:
Primary counties: Dade and Linn
Neighboring counties: Adair, Barton, Cedar, Chariton, Greene, Grundy, Jasper, Lawrence, Livingston, Macon, Polk, and Sullivan.
Small nonfarm businesses, small agricultural cooperatives, small businesses engaged in aquaculture, and most private nonprofit organizations of any size may apply for Economic Injury Disaster Loans of up to $2 million. These loans are intended to help meet working capital needs caused by the disaster. “Economic Injury Disaster Loans may be used to pay fixed debts, payroll, accounts payable, and other bills that cannot be paid because of the disaster’s impact,” Sánchez explained.
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.
The interest rate is set at 4 percent for businesses and 2.375 percent for private nonprofit organizations, with terms up to 30 years. Loan amounts and terms are determined by the SBA based on each applicant’s financial condition. Interest does not accrue until 12 months from the date of the initial disaster loan disbursement, and SBA disaster loan repayment begins 12 months from the date of the first disbursement.
By law, SBA makes Economic Injury Disaster Loans available when the U.S. Secretary of Agriculture designates an agricultural disaster, which occurred on July 24, 2023. Businesses primarily engaged in farming or ranching are not eligible for SBA disaster assistance. Agricultural enterprises should contact the Farm Services Agency about the U.S. Department of Agriculture assistance made available by the Secretary’s declaration. However, nurseries are eligible for SBA disaster assistance in drought disasters.
Applicants may apply online and receive additional disaster assistance information at at this link on the SBA website. For more information on SBA disaster assistance, applicants may also call SBA’s Customer Service Center at (800) 659-2955 or email [email protected]. For people who are deaf, hard of hearing, or have a speech disability, please dial 7-1-1 to access telecommunications relay services.
