The U.S. Small Business Administration (SBA) is reminding small businesses and private nonprofit organizations in Maryland about the approaching deadline to apply for federal disaster loans. These loans are intended to offset economic losses caused by the drought that began on July 16, 2024. The deadline for applications is March 31, 2025.
The disaster declaration includes Allegany, Garrett, and Washington counties in Maryland; Bedford, Fulton, and Somerset counties in Pennsylvania; and Hampshire, Mineral, and Morgan counties in West Virginia.
Under this declaration, SBA’s Economic Injury Disaster Loan (EIDL) program is available to small businesses, small agricultural cooperatives, nurseries, and private nonprofits that suffered financial losses due to the drought. However, agricultural producers such as farmers or ranchers are not eligible unless they operate small aquaculture enterprises.
These EIDLs can be used for working capital needs caused by the disaster even if there was no physical damage to the business or organization. The loans may cover fixed debts, payroll expenses, accounts payable, and other bills that were not paid because of the drought.
"SBA loans help eligible small businesses and private nonprofits cover operating expenses after a disaster," said Chris Stallings from the SBA's Office of Disaster Recovery and Resilience. "These loans not only help business owners get back on their feet but also play a key role in sustaining local economies in the aftermath of a disaster."
Loan amounts can reach up to $2 million with interest rates as low as 4% for small businesses and 3.25% for private nonprofits. Terms can extend up to 30 years with no interest accruing or payments due until one year after the first loan disbursement. The SBA determines loan amounts and terms based on each applicant’s financial condition.
Interested parties can apply online at sba.gov/disaster or contact SBA’s Customer Service Center at (800) 659-2955 for more information on disaster assistance options. Telecommunications relay services are available by dialing 7-1-1 for those who are deaf or hard of hearing.
The final date to submit economic injury applications is March 31, 2025.