The U.S. Small Business Administration (SBA) is reminding small businesses and private nonprofit organizations in Virginia of 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 23, 2024. The application deadline is April 7, 2025.
The disaster declaration includes several areas: Alexandria, Arlington, Fairfax City, Fairfax County, Falls Church, Fauquier, Loudoun, Manassas, Manassas Park, Prince William and Stafford in Virginia; Charles, Montgomery and Prince George's counties in Maryland; and the District of Columbia.
Eligible entities under this declaration can access SBA’s Economic Injury Disaster Loan (EIDL) program. This program is available to small businesses, small agricultural cooperatives, nurseries and private nonprofits that have experienced financial losses directly related to the drought. However, agricultural producers such as farmers or ranchers are not eligible unless they are small aquaculture enterprises.
EIDLs provide working capital for needs arising from the disaster. They can be used for expenses like fixed debts, payroll and accounts payable even if no physical damage was sustained by the business or nonprofit.
Chris Stallings from the SBA stated: “Through a declaration by the U.S. Secretary of Agriculture, SBA provides critical financial assistance to help communities recover.” He added that they are pleased to offer support through these loans.
Loan amounts can reach up to $2 million with interest rates starting at 4% for small businesses and 3.25% for nonprofits. Terms may extend up to 30 years with no interest accrual or payments due until one year after the first loan disbursement. Loan specifics depend on each applicant's financial condition.
Applications can be submitted online at sba.gov/disaster or inquiries made via phone at (800) 659-2955 or email at disastercustomerservice@sba.gov. Telecommunications relay services are available for those who need them by dialing 7-1-1.
The final date for submitting economic injury applications is April 7, 2025.