SBA Loan Deadline Approaches Due to Drought

The US Small Business Administration is reminding small non-farm businesses in 64 counties, including Grand, to apply for a federal disaster loan from the SBA by the Nov. 5 deadline.

Midwest Director of Disaster Field Operations Tanya Garfield said in a statement that 64 counties in Colorado and neighboring counties of Arizona, Kansas, Nebraska, New Mexico, Oklahoma, Utah, and Wyoming were eligible for low-interest loans to offset economic losses due to drought-induced drop in income since November 1, 2020.

According to Garfield, small non-farm businesses, small farm cooperatives, small businesses engaged in aquaculture, and most private nonprofits of any size can apply for economic disaster loans of up to $ 2. million dollars to help meet the working capital needs caused by the disaster.

“Economic disaster loans can be used to pay fixed debts, salaries, accounts payable and other bills that cannot be paid due to the impact of the disaster,” Garfield said. “SBA eligibility covers both the economic impacts on businesses dependent on farmers and ranchers who suffered agricultural production losses caused by the disaster and on businesses directly affected by the disaster. Aid for economic damage is available whether or not the claimant has suffered material damage.

The interest rate is 3% for companies and 2% for private non-profit organizations with a term of up to 30 years. The amounts and terms of the loan are set by the SBA and are based on the financial status of each applicant.

By law, the SBA makes economic disaster loans available when the US Secretary of Agriculture designates an agricultural disaster. The secretary declared this disaster on March 5.

Businesses primarily engaged in agriculture or ranching are not eligible for SBA disaster assistance. Farm businesses should contact the Farm Services Agency regarding the U.S. Department of Agriculture assistance made available by the Secretary’s Statement. However, nurseries are eligible for disaster assistance from the SBA in the event of drought.

Applicants can apply online, receive additional information about disaster assistance, and download applications at Applicants can also call the SBA Customer Service Center at 800-659-2955 or email [email protected] for more information on SBA Disaster Assistance. People who are deaf or hard of hearing can call 800-877-8339.

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