The U.S. Small Business Administration (SBA) is reminding small businesses and private nonprofit organizations in South Dakota about the approaching deadline to apply for federal disaster loans. These low-interest loans aim to offset economic losses caused by drought conditions that started on August 20, 2024.
The disaster declaration affects the counties of Custer, Fall River, Haakon, Jackson, Lawrence, Meade, Oglala Lakota, and Pennington in South Dakota, along with Niobrara and Weston counties in Wyoming.
The SBA’s Economic Injury Disaster Loan (EIDL) program is available to small businesses, small agricultural cooperatives, nurseries, and private nonprofits impacted by financial losses directly attributed to the disaster. Notably, the SBA cannot provide disaster loans to agricultural producers, farmers, or ranchers, aside from small aquaculture enterprises.
EIDLs are available for working capital needs related to the disaster and can be used to pay fixed debts, payroll, accounts payable, and other bills not paid due to the disaster. Physical damage to premises is not required to apply.
"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."
The loan amounts can go up to $2 million, with interest rates as low as 4% for small businesses and 3.25% for private nonprofits, with repayment terms extending up to 30 years. There is an interest and payment deferral for 12 months from the first loan disbursement. Loan amounts and terms are determined by the SBA based on the financial condition of each applicant.
To apply online, eligible parties are encouraged to visit sba.gov/disaster. Alternatively, applicants can call the SBA’s Customer Service Center or email for further information on SBA disaster assistance. Individuals with hearing or speech disabilities can use the telecommunications relay service by dialing 7-1-1.
The deadline for submitting completed loan applications is April 28, 2025.