In response to the severe economic impact caused by drought, small nonfarm businesses in 14 Missouri counties have been declared eligible to apply for low-interest federal disaster loans by the U.S. Small Business Administration (SBA). The announcement was made by Director Tanya N. Garfield of SBA’s Disaster Field Operations Center-West. The loans aim to offset the financial losses experienced by businesses due to reduced revenues resulting from the ongoing drought that began on July 18.
The primary counties included in the assistance program are Dade and Linn, with neighboring counties such as Adair, Barton, Cedar, Chariton, Greene, Grundy, Jasper, Lawrence, Livingston, Macon, Polk, and Sullivan also being eligible.
Garfield emphasized that SBA’s eligibility criteria encompass both businesses that depend on farmers and ranchers who have suffered agricultural production losses due to the disaster, as well as businesses directly impacted by the drought.
Under the Economic Injury Disaster Loan program, small nonfarm businesses, small agricultural cooperatives, small businesses engaged in aquaculture, and most private nonprofit organizations of any size may qualify for loans of up to $2 million. These funds will help them meet their financial obligations and cover operating expenses that would have been manageable had the disaster not occurred.
It’s important to note that eligibility for these loans is solely based on the financial impact of the disaster and does not consider any property damage. The interest rates for these loans are set at 4 percent for businesses and 2.375 percent for private nonprofit organizations, with a maximum repayment term of 30 years. The loans are specifically targeted towards small businesses and most private nonprofits that lack the financial capacity to cope with the adverse effects of the drought without facing hardship.
The declaration of the disaster, which made these loans available, was officially made by the U.S. Secretary of Agriculture on July 24, 2023.
Garfield clarified that SBA disaster assistance is not applicable to businesses primarily engaged in farming or ranching. Instead, agricultural enterprises affected by the drought should contact the Farm Services Agency to inquire about the assistance provided by the U.S. Department of Agriculture under the Secretary’s declaration. However, nurseries are eligible for SBA disaster assistance during drought disasters.
Interested applicants can apply for these loans online and access additional disaster assistance information, as well as download application forms, at https://disasterloanassistance.sba.gov/. Further inquiries about SBA disaster assistance can be directed to SBA’s Customer Service Center at (800) 659-2955 or via email at [email protected]. Individuals with hearing impairments or speech disabilities can access telecommunications relay services by dialing 7-1-1. Completed applications should be mailed to the U.S. Small Business Administration, Processing and Disbursement Center, 14925 Kingsport Road, Fort Worth, TX 76155.
The deadline to apply for economic injury relief is March 25, 2024.
