The deadline for SBA working capital loans due to drought is fast approaching. Businesses in six states have until November 5, 2021 to apply for a federal SBA disaster loan for economic harm. These businesses can use Economic Disaster Loans (EIDL) to pay fixed debts, salaries, accounts payable, and other bills.
EIDL’s impending deadline for drought relief
Just weeks away from the November 5 deadline, the loans are designed to help businesses suffering economic losses caused by the drought that began on January 1, 2021. This includes the following counties and states:
- Primary counties of Utah: Castor, Box Elder, Carbon, Duchesne, Emery, Garfield, Grand, Iron, Juab, Kane, Millard, San Juan, Sevier, Tooele, Uintah, Washington and Wayne
- Utah Counties: Cache, Daggett, Davis, Piute, Salt Lake, Sanpete, Summit, Utah, Wasatch and Weber
- Arizona counties: Apache, Coconino, Mohave and Navajo
- Colorado counties: Dolores, Garfield, Mesa, Moffat, Montezuma, Montrose, Rio Blanco and San Miguel
- Counties of Idaho: Cassia and Oneida
- Nevada counties: Elko, Lincoln and white pine
- New Mexico County: San Juan
The SBA makes EIDL funds available when the US Secretary of Agriculture designates an agricultural disaster. In this case, the disaster declaration was announced on March 5, 2021 by the secretary.
US Small Business Administration‘s Disaster Field Operations Center-West director Tanya N. Garfield said small non-farm businesses, small farmer cooperatives, small businesses engaged in aquaculture, and most private organizations in Nonprofits of any size can apply for EIDL.
Garfield says these companies can apply for loans of up to $ 2 million to meet the working capital needs caused by the disaster. This includes not being able to pay their bills due to the impact of the disaster.
Garfield goes on to say, “Eligibility for the SBA 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.
When a company applies for EIDL, it gets an interest rate of 3%, and it goes down to 2% for private nonprofits with terms of up to 30 years for both. Taking into account the financial situation of each applicant, the SBA fixes the amount and duration of the loan for each applicant.
The SBA also points out that businesses primarily engaged in agriculture or ranching are not eligible for SBA disaster assistance. People working in agricultural businesses should contact the Farm Services Agency about the US Department of Agriculture.
You can get disaster assistance information, download apps, and apply online at https://disasterloanassistance.sba.gov/.
You can also call the SBA Customer Service Center at (800) 659-2955 or email them at [email protected]
If you are deaf or hard of hearing, you can call (800) 877-8339.
Completed applications should be mailed to US Small Business Administration, Processing and Disbursement Center, 14925 Kingsport Road, Fort Worth, TX 76155.