The U.S. Small Business Administration (SBA) has issued a reminder to small businesses and private nonprofit organizations in South Carolina regarding the approaching deadline for federal disaster loan applications. These loans are intended to mitigate economic losses caused by the drought that began on July 9, 2024. The application deadline is set for March 17.
The disaster declaration encompasses several counties in South Carolina, including Berkeley, Calhoun, Chesterfield, Clarendon, Darlington, Dillon, Florence, Georgetown, Horry, Kershaw, Lee, Marion, Marlboro, Orangeburg, Richland, Sumter and Williamsburg. Additionally, it covers Brunswick, Columbus and Robeson counties in North Carolina.
Through this declaration, the SBA’s Economic Injury Disaster Loan (EIDL) program is accessible to small businesses and nonprofits that have experienced financial setbacks directly linked to the drought. It should be noted that agricultural producers such as farmers or ranchers are not eligible for these loans unless they are small aquaculture enterprises.
These EIDLs can address working capital needs resulting from the disaster and may be used even if no physical damage occurred to the business or organization. Funds from these loans can be allocated toward fixed debts like payroll or accounts payable.
Loan amounts can reach up to $2 million with interest rates starting at 4% for small businesses and 3.25% for nonprofits over terms of up to 30 years. Interest does not accrue until a year after the first disbursement of funds. The SBA determines loan amounts based on each applicant's financial situation.
Applications can be submitted online at sba.gov/disaster. Further assistance is available through SBA’s Customer Service Center by calling (800) 659-2955 or emailing disastercustomerservice@sba.gov. Telecommunications relay services can be accessed by dialing 7-1-1 for those who require it due to hearing or speech disabilities.
All completed applications must be submitted by March 17.