The U.S. Small Business Administration (SBA) is reminding small businesses and private nonprofit organizations in Virginia about the upcoming 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 numerous counties across Virginia, Maryland, and West Virginia. Specifically, it covers Albemarle, Augusta, Bath, Buckingham, Charlottesville, Clarke, Culpeper, Fairfax County, Fauquier, Fluvanna, Frederick, Greene, Harrisonburg, Highland, Loudoun, Louisa, Madison, Nelson, Orange, Page, Prince William, Rappahannock, Rockbridge, Rockingham, Shenandoah, Stafford Staunton Warren Waynesboro Winchester in Virginia; Frederick Montgomery Washington in Maryland; and Berkeley Hampshire Hardy Jefferson Morgan Pendleton Pocahontas in West Virginia.
Under this declaration SBA’s Economic Injury Disaster Loan (EIDL) program is available to small businesses small agricultural cooperatives nurseries PNPs that suffered financial losses directly related to the disaster. The SBA cannot provide disaster loans to agricultural producers farmers ranchers except for small aquaculture enterprises.
These EIDLs can be used for working capital needs resulting from the disaster even if there was no physical damage to the business or PNP. They may cover fixed debts payroll accounts payable and other bills not paid due to the disaster.
"SBA loans help eligible small businesses and private nonprofits cover operating expenses after a disaster which is crucial for their recovery," said Chris Stallings associate administrator of the Office of Disaster Recovery and Resilience at the SBA. "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 PNPs with terms up to 30 years. Interest does not accrue nor are payments due until 12 months from the date of first loan disbursement. The SBA determines loan amounts and terms based on each applicant’s financial condition.
Applications can be submitted online at sba.gov/disaster or by contacting SBA’s Customer Service Center at (800) 659-2955 or emailing disastercustomerservice@sba.gov. For those who are deaf hard of hearing or have a speech disability please dial 7-1-1 for telecommunications relay services.
The deadline for submitting economic injury applications is March 31 2025.