The U.S. Small Business Administration (SBA) is providing financial relief for Utah's small businesses and private nonprofit organizations that have experienced economic losses because of the drought starting January 28. Low-interest federal disaster loans are now available to qualified entities in several counties across Utah, Arizona, Colorado, Nevada, and New Mexico.
Specifically, the declaration by SBA includes the Utah counties of Beaver, Emery, Garfield, Grand, Iron, Kane, Millard, Piute, San Juan, Sevier, and Wayne. It also extends to Apache, Coconino, and Navajo counties in Arizona; Dolores, Mesa, Montezuma, Montrose, and San Miguel counties in Colorado; Lincoln County in Nevada; and San Juan County in New Mexico.
The SBA’s Economic Injury Disaster Loan (EIDL) program extends to small businesses, small agricultural cooperatives, nurseries, and private nonprofits with financial losses directly tied to the drought. However, agricultural producers like farmers and ranchers are not eligible, with the exception of small aquaculture enterprises.
EIDLs cater to working capital needs triggered by the disaster. They can be utilized even if there is no physical damage to the business or nonprofit. Funds may cover fixed debts, payroll, accounts payable, and other necessary expenses interrupted by 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."
Loan amounts can reach up to $2 million, with interest rates set at 4% for small businesses and 3.625% for private nonprofits. The loans have terms extending up to 30 years, and both interest and payments are deferred for 12 months from the initial date of disbursement. Each applicant’s loan amounts and terms are determined based on their financial condition.
Applications can be submitted online at sba.gov/disaster. Further inquiries can be directed to SBA’s Customer Service Center at (800) 659-2955 or via email at disastercustomerservice@sba.gov. Telecommunications relay services are accessible 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 December 1.
"The U.S. Small Business Administration helps power the American dream of business ownership. As the only go-to resource and voice for small businesses backed by the strength of the federal government, the SBA empowers entrepreneurs and small business owners with the resources and support they need to start, grow, expand their businesses, or recover from a declared disaster. It delivers services through an extensive network of SBA field offices and partnerships with public and private organizations. To learn more, visit www.sba.gov."