The U.S. Small Business Administration (SBA) reminds South Dakota small businesses and private nonprofit organizations of the approaching May 15 deadline for federal disaster loan applications. These loans aim to mitigate economic losses from severe storms, straight-line winds, and flooding that occurred from June 16 to July 8, 2024.
The official disaster declaration encompasses several counties in South Dakota, Iowa, and Nebraska. In South Dakota, it includes Aurora, Clay, Davison, Douglas, Hanson, Hutchinson, Lincoln, McCook, Minnehaha, Sanborn, Turner, Union, and Yankton. Iowa counties affected are Lyon, Plymouth, Sioux, and Woodbury, while Dakota and Dixon counties are part of the declaration in Nebraska.
The SBA's Economic Injury Disaster Loan (EIDL) program offers financial support to small businesses, small agricultural cooperatives, nurseries, and private nonprofit organizations that have suffered financial losses due to the disaster. It's important to note that these loans are not available to agricultural producers, farmers, or ranchers, with the exception of small aquaculture enterprises.
EIDLs can be used for working capital needs, including paying fixed debts, payroll, accounts payable, and other financial obligations that the disaster impacted. As Chris Stallings, associate administrator of the Office of Disaster Recovery and Resilience at the SBA, states, “SBA loans help eligible small businesses and private nonprofits cover operating expenses after a disaster, which is crucial for their recovery. These loans not only help business owners get back on their feet but also play a key role in sustaining local economies in the aftermath of a disaster.”
Eligible applicants can borrow up to $2 million, with interest rates as low as 4% for small businesses and 3.25% for nonprofits, repayable over a term of up to 30 years. The loans' financial conditions dictate the specific amount and terms, with no interest accruing or payments due until one year after the initial disbursement.
Applications can be submitted online at sba.gov/disaster, or interested parties can contact the SBA’s Customer Service Center by calling (800) 659-2955 or emailing disastercustomerservice@sba.gov. Telecommunications relay services are available for people with hearing or speech disabilities by dialing 7-1-1.
The completed loan applications must reach the SBA by May 15.
About the U.S. Small Business Administration: The SBA is a key resource and advocate for small businesses in the U.S., providing essential resources for start-up, growth, and disaster recovery. The organization's services are disseminated through a network of field offices and partnerships.