The U.S. Small Business Administration (SBA) has issued a reminder to small businesses and private nonprofit organizations in Maryland about the approaching deadline to apply for federal disaster loans. These loans are intended to mitigate economic losses resulting from the drought that began on July 23, 2024. The application deadline is April 7, 2025.
The disaster declaration encompasses several counties across Maryland, Pennsylvania, Virginia, and West Virginia. Specifically, it includes Allegany, Carroll, Frederick, Garrett, Howard, Montgomery, and Washington counties in Maryland; Adams, Fayette, Franklin, Fulton and Somerset counties in Pennsylvania; Loudoun County in Virginia; and Berkeley, Grant, Jefferson, Mineral, Morgan and Preston counties in West Virginia.
Through this declaration under the SBA’s Economic Injury Disaster Loan (EIDL) program, eligible entities such as small businesses and private nonprofits can access financial support if they have suffered economic losses due to the drought. However, agricultural producers like farmers or ranchers are not eligible unless they operate small aquaculture enterprises.
These EIDLs provide working capital to cover essential expenses such as fixed debts and payroll even if no physical damage occurred. "SBA loans help eligible small businesses and PNPs cover operating expenses after a disaster," said Chris Stallings of 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."
Loan amounts can reach up to $2 million with interest rates set at 4% for small businesses and 3.25% for nonprofits over terms up to 30 years. Interest accrual begins one year after the first loan disbursement.
Applications can be submitted online at sba.gov/disaster or by contacting SBA’s Customer Service Center via phone or email for further assistance.
The final date for submitting economic injury applications is April 7th of this year.