The U.S. Small Business Administration (SBA) has issued a reminder for Nebraska small businesses and private nonprofit organizations about the approaching deadline to apply for disaster loans related to the drought that started on July 30, 2024. Entities have until May 23 to apply for these low-interest federal loans meant to mitigate economic losses.
The Nebraska counties covered by this disaster declaration include Banner, Box Butte, Morrill, Scotts Bluff, and Sioux, along with Goshen County in Wyoming.
SBA’s Economic Injury Disaster Loan (EIDL) program is accessible to small businesses, small agricultural cooperatives, nurseries, and private nonprofit organizations with financial losses rooted in the drought. Agricultural producers, farmers, and ranchers are ineligible, except for small aquaculture enterprises.
These loans are intended for working capital needs and available even if no physical damage occurred to the businesses or organizations. Loan funds may be used for operating expenses like fixed debts, payroll, and accounts payable.
“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.”
Small businesses can borrow up to $2 million with interest rates as low as 4%, while private nonprofits can get rates starting at 3.25%. The loan terms can extend up to 30 years, and interest doesn’t accrue until 12 months after the first disbursement. Loan conditions are dependent on the applicant’s financial situation.
Applications can be filed online at sba.gov/disaster. Further inquiries can be made by contacting SBA’s Customer Service Center at (800) 659-2955 or emailing disastercustomerservice@sba.gov. For people who are deaf or hard of hearing, telecommunications relay services can be accessed by dialing 7-1-1.
All loan applications must be submitted to the SBA by May 23.