The U.S. Small Business Administration (SBA) has issued a reminder to small businesses and private nonprofit organizations in North Carolina about the approaching deadline of March 17 for applying for federal disaster loans. These loans are intended to mitigate economic losses caused by the drought that began on July 9, 2024.
The disaster declaration affects several counties, including Bladen, Brunswick, Columbus, Pender, and Robeson in North Carolina, as well as Dillon and Horry counties in South Carolina.
Through this declaration, the SBA's Economic Injury Disaster Loan (EIDL) program is accessible to small businesses, small agricultural cooperatives, nurseries, and private nonprofits that have experienced financial setbacks due to the drought. However, agricultural producers, farmers, or ranchers are not eligible for these loans unless they are small aquaculture enterprises.
EIDLs can be used for working capital needs resulting from the disaster. They are available even if there was no physical damage to the business or organization. The funds may cover fixed debts, payroll expenses, accounts payable, and other bills that would have been paid had the drought not occurred.
Loan amounts can reach up to $2 million with interest rates as low as 4% for small businesses and 3.25% for private nonprofits. The terms can extend up to 30 years. Interest does not accrue until 12 months after the first loan disbursement. The SBA determines loan amount terms based on each applicant’s financial condition.
For more information or to apply online, visit sba.gov/disaster. Applicants can also contact SBA’s Customer Service Center at (800) 659-2955 or email disastercustomerservice@sba.gov for assistance regarding SBA disaster aid. Telecommunications relay services are available by dialing 7-1-1 for those who are deaf or hard of hearing.
The deadline for submitting economic injury applications is March 17, 2025.