The U.S. Small Business Administration (SBA) has announced low-interest federal disaster loans for small businesses and private nonprofit organizations in Arkansas that suffered economic losses due to a drought starting November 1, 2024. The relief applies to the counties of Ashley, Benton, Boone, and others within Arkansas, as well as several neighboring areas in Louisiana, Missouri, and Oklahoma.
Chris Stallings, the associate administrator of the Office of Disaster Recovery and Resilience at the SBA, stated, "Through a declaration by the U.S. Secretary of Agriculture, SBA provides critical financial assistance to help communities recover. We’re pleased to offer loans to small businesses and private nonprofits impacted by these disasters."
The SBA’s Economic Injury Disaster Loan (EIDL) program extends to small businesses, including agricultural cooperatives and nurseries, along with private nonprofit organizations. However, the SBA will not provide loans to agricultural producers, farmers, or ranchers, except for small aquaculture enterprises.
The loans address working capital needs caused by the drought and are available regardless of any physical damage sustained. Funds can be used to cover fixed debts, payroll, accounts payable, and other obligations. Loan amounts can reach up to $2 million, with interest rates set at 4% for small businesses and 3.625% for private nonprofit organizations. The SBA determines loan amounts and terms based on the applicant's financial situation, and repayment terms can extend up to 30 years with interest-free periods available for the first year.
Applicants can file online at sba.gov/disaster or contact the SBA’s Customer Service Center for further assistance. The deadline for submitting completed loan applications is November 25.
For more information about the U.S. Small Business Administration and its services, visit www.sba.gov.