The U.S. Small Business Administration (SBA) has reminded eligible small businesses and private nonprofits in Oklahoma about the impending deadline to apply for federal disaster loans following a drought that began on September 3, 2024. The final date for applications is May 9.
This disaster declaration is relevant to the counties of Caddo, Comanche, Cotton, Grady, Kiowa, Stephens, and Tillman. The SBA's Economic Injury Disaster Loan (EIDL) program is available to small businesses, small agricultural cooperatives, nurseries, and private nonprofit organizations that suffered financial setbacks due to the drought. However, the SBA is not extending loans to traditional agricultural producers, farmers, or ranchers except for small aquaculture ventures.
EIDLs offer working capital support and can be utilized even if the entity did not incur physical damage. Loan proceeds can be used for various obligations such as covering fixed debts, payroll, and other unsettled bills due to the economic disruption.
“Through a declaration by the U.S. Secretary of Agriculture, SBA provides critical financial assistance to help communities recover,” said 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.”
In terms of financing, the SBA can lend up to $2 million, with interest rates set at 4% for small businesses and 3.25% for private nonprofits. These loans may be taken with repayment periods stretching up to 30 years. Notably, interest accumulation and repayments only begin 12 months after the first disbursement of funds. Loan specifics will be adjusted based on the borrower’s financial status.
The SBA urges applicants to submit their applications without delay, as processing priority will be decided according to the order in which applications are received.
Interested entities can apply online at sba.gov/disaster or reach out to the SBA Customer Service Center. Applicants requiring telecommunications relay services can dial 7-1-1.
The SBA firmly recommends completing and submitting applications by May 9.