The U.S. Small Business Administration (SBA) is alerting eligible small businesses and private nonprofit organizations in South Dakota about the impending deadline of May 16 to apply for federal disaster loans. These loans are intended to offset economic losses from drought conditions that began on July 23, 2024.
This declaration encompasses several counties across multiple states, including Butte, Custer, Fall River, Harding, Lawrence, Meade, Oglala Lakota, and Perkins in South Dakota. Additionally, it covers Carter County in Montana, Dawes and Sioux counties in Nebraska, and Crook and Niobrara counties in Wyoming.
The SBA's Economic Injury Disaster Loan (EIDL) program offers financial relief to eligible small businesses, agricultural cooperatives, nurseries, and private nonprofits that have incurred financial setbacks due to the drought. However, the program does not extend to agricultural producers, farmers, or ranchers, except for small aquaculture enterprises.
The EIDL funds are intended for working capital necessities resulting from the drought, such as covering fixed debts, payroll, accounts payable, and other urgent financial obligations. The loans can reach amounts of up to $2 million, with interest rates starting at 4% for small businesses and 3.25% for nonprofit organizations. The loans have terms extending up to 30 years, with no interest accrual or payment required until a year after the first loan disbursement.
Chris Stallings, 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.” He added, “We’re pleased to offer loans to small businesses and private nonprofits impacted by these disasters.”
Those wishing to apply for these loans can do so online at sba.gov/disaster or by contacting the SBA Customer Service Center at (800) 659-2955 or emailing disastercustomerservice@sba.gov.
The completed loan applications must be submitted to the SBA no later than May 16.