The U.S. Small Business Administration (SBA) has announced that low-interest federal disaster loans are now available to small businesses and private nonprofit organizations in Hawaii impacted by the drought that began on January 1. This declaration covers the counties of Hawaii, Honolulu, Kalawao, Kauai, and Maui.
The SBA's Economic Injury Disaster Loan (EIDL) program is accessible to small businesses, small agricultural cooperatives, nurseries, and private nonprofits that sustained financial losses because of the drought. However, these disaster loans are not available to agricultural producers, farmers, or ranchers, except for small aquaculture enterprises.
The EIDLs can be used to meet working capital needs resulting from the disaster even if the businesses or nonprofits didn't incur physical damage. Funds from the loans can cover fixed debts, payroll, accounts payable, and other bills that remain unpaid due to the drought.
"Through a declaration by the U.S. Secretary of Agriculture, SBA provides critical financial assistance to help communities recover," stated Chris Stallings, associate administrator of the Office of Disaster Recovery and Resilience at the SBA. "We’re pleased to offer loans to small businesses and private nonprofits impacted by these disasters."
Loans can reach up to $2 million, with interest rates as low as 4% for small businesses and 3.625% for private nonprofits, and terms up to 30 years. There is a 12-month deferment on interest accrual and payments from the first disbursement date. Additionally, the SBA determines loan amounts and terms based on the financial condition of each applicant.
Interested parties can apply online by visiting sba.gov/disaster. Alternatively, information on SBA disaster assistance can be obtained by calling SBA’s Customer Service Center at (800) 659-2955 or emailing disastercustomerservice@sba.gov. Telecommunications relay services are available by dialing 7-1-1 for those who are deaf, hard of hearing, or have a speech disability.
The deadline for submitting completed loan applications to the SBA is November 25.
The U.S. Small Business Administration assists with business ownership through its various resources and federal government backing. It supports entrepreneurs and small business owners in starting, growing, expanding, or recovering from disasters. More information is available at www.sba.gov.