Small Utah Businesses Eligible for SBA Loans

SALT LAKE CITY (ABC4) – Officials are urging local non-farm small businesses to apply for low-interest federal disaster disaster loans from the US Small Business Administration, SBA.

According to director Tanya N. Garfield of the SBA’s Disaster Field Operations Center, businesses in five counties in Utah and neighboring counties of Idaho and Wyoming are now eligible.

“Over the past year the focus has been on providing relief from COVID-19 that many entrepreneurs may have forgotten that there are many other ways the SBA supports small businesses,” shares Marla Trollan , District Manager for the Utah SBA. “The US Secretary of Agriculture declared this year’s drought an agricultural disaster on June 25, 2021, making small, non-farm businesses affected by drought eligible for an economic disaster loan. This is Utah’s sixth declared disaster due to our drought this year.

Trollan says these loans compensate for economic losses due to the reduction in income caused by the drought in subsequent major counties that began in early May.

Eligible Utah counties: Rich, Cache, Morgan, Summit, and Weber.

Neighboring counties of Idaho: Bear Lake and Franklin.

Wyoming neighboring counties: Lincoln and Uinta.

“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,” Garfield adds.

According to officials, small non-farm businesses, small farm cooperatives, small businesses engaged in aquaculture, and most private non-profit organizations of any size, are eligible for up to $ 2 million to help meet. financial obligations and “operating expenses that might have been covered had the disaster not occurred.”

“Eligibility for these loans is based solely on the financial impact of the disaster and not on actual property damage. These loans have an interest rate of 2.88% for businesses and 2% for private non-profit organizations, with a maximum term of 30 years, and are available for small businesses and most organizations. private nonprofits without the financial capacity to offset the negative impact without difficulty, ”Garfield shares.

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 June 25, 2021.

“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 SBA drought disaster assistance, ”they conclude.

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