The U.S. Small Business Administration (SBA) has issued a reminder to small businesses and private nonprofit organizations in West Virginia regarding the upcoming deadline of March 31, 2025, to apply for federal disaster loans. These loans are intended to mitigate economic losses due to the drought that began on July 16, 2024.
The disaster declaration encompasses several counties across three states: Barbour, Berkeley, Grant, Greenbrier, Hampshire, Hardy, Jefferson, Mineral, Morgan, Pendleton, Pocahontas, Preston, Randolph, Tucker, Upshur and Webster in West Virginia; Allegany, Garrett and Washington in Maryland; and Augusta, Bath, Clarke, Frederick, Highland, Loudoun, Rockingham and Shenandoah in Virginia.
The SBA's Economic Injury Disaster Loan (EIDL) program is available for small businesses and private nonprofits that experienced financial losses as a result of the drought. However, agricultural producers such as farmers or ranchers are not eligible unless they operate small aquaculture enterprises.
EIDLs provide working capital for businesses affected by the disaster. They can be used for expenses like fixed debts and payroll even if there was no physical damage to the business. Chris Stallings from the SBA's Office of Disaster Recovery and Resilience emphasized that "SBA loans help eligible small businesses and private nonprofits cover operating expenses after a disaster," which is vital for recovery efforts.
Loan amounts can reach up to $2 million with interest rates starting at 4% for small businesses and 3.25% for nonprofits. The repayment terms can extend up to 30 years. Interest does not accrue until one year after the first loan disbursement.
Applications can be submitted online at sba.gov/disaster or by contacting SBA’s Customer Service Center. Completed applications must be submitted by March 31.