The U.S. Small Business Administration (SBA) has issued a reminder to small businesses and private nonprofit organizations in South Dakota regarding an upcoming deadline. These entities have until May 5, 2025, to apply for low-interest federal disaster loans to mitigate economic losses caused by a drought that began on August 27, 2024.
The disaster declaration encompasses counties in South Dakota, including Butte, Harding, and Perkins, as well as Carter and Fallon counties in Montana, and Adams and Bowman counties in North Dakota.
The SBA’s Economic Injury Disaster Loan (EIDL) program provides support to small businesses, small agricultural cooperatives, nurseries, and private nonprofit organizations with financial losses directly attributable to the drought. However, the program does not extend to agricultural producers, farmers, or ranchers, except for small aquaculture enterprises.
The EIDLs are designed to cover working capital needs stemming from the disaster and are available even if a business or organization did not experience physical damage. The loans can be used for fixed debts, payroll, accounts payable, and other expenses unmet due to the disaster.
“Through a declaration by the U.S. Secretary of Agriculture, SBA provides critical financial assistance to help communities recover,” noted 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.”
The loans can amount to as much as $2 million with interest rates of 4% for small businesses and 3.25% for private nonprofits, with repayment terms extending up to 30 years. Interest does not accrue, and payments are not required, until 12 months after the first loan disbursement. The SBA determines the loan amounts and terms based on the applicant’s financial situation.
Applications can be submitted online at sba.gov/disaster. For further information, applicants may contact SBA’s Customer Service Center at (800) 659-2955 or email disastercustomerservice@sba.gov. Individuals who are deaf, hard of hearing, or have a speech disability should dial 7-1-1 to access telecommunications relay services.
Completed loan applications must be submitted to the SBA by May 5.
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