The U.S. Small Business Administration (SBA) has issued a reminder to small businesses and private nonprofit organizations in North Carolina about the upcoming deadline to apply for federal disaster loans. These loans aim to offset economic losses caused by the drought that began on July 9, 2024. The application deadline is March 24, 2025.
The disaster declaration affects several counties across North Carolina, South Carolina, and Virginia. Specifically, it includes Alleghany, Bladen, Columbus, Cumberland, Davidson, Davie, Forsyth, Guilford, Hoke, Iredell, Robeson, Rockingham, Scotland, Stokes, Surry, Wilkes and Yadkin in North Carolina; Dillion, Horry and Marlboro in South Carolina; and Carroll, Grayson, Henry and Patrick in Virginia.
Eligible entities under this declaration can access the SBA’s Economic Injury Disaster Loan (EIDL) program. This program is available to small businesses, small agricultural cooperatives, nurseries affected by the drought as well as private nonprofits. However, it does not extend to agricultural producers such as farmers or ranchers unless they are small aquaculture enterprises.
The EIDLs are intended for working capital needs resulting from the disaster and can be used even if there was no physical damage to the business or organization. The funds may cover fixed debts like payroll and accounts payable that could have been settled if not for the drought.
Loan amounts can reach up to $2 million with interest rates set at 4% for small businesses and 3.25% for PNPs over terms of up to 30 years. Interest will not accrue nor payments be required until one year after the first loan disbursement date. The SBA determines loan terms based on each applicant's financial condition.
Applications can be submitted online at sba.gov/disaster or through SBA’s Customer Service Center via phone or email. For those with hearing or speech disabilities needing assistance via telecommunications relay services should dial 7-1-1.
All completed applications must be submitted by March 24th of this year.
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